Singapore has invested significant efforts in positioning itself as a regional restructuring hub in recent years, introducing substantial reforms and enhancements to improve the effectiveness of its debt restructuring regime. These reforms include enhanced moratorium protections, super-priority for rescue financing, “pre-packaged” schemes of arrangements, and restrictions on the operation of ipso facto clauses.

The approval of the creation of an administrative convenience class (Administrative Convenience Class) comprising low value creditors to reduce the administrative burden on restructuring entities by the General Division of the Singapore High Court (High Court) in Re Zipmex Pte Ltd and other matters [2023] SGHC 88 (Re Zipmex) is a positive step in promoting Singapore as a preferred restructuring destination, particularly for crypto restructurings.

Background

1. At the Debt Restructuring in the Asia-Pacific seminar on 22 September 2022 co-organised by Singapore International Commercial Court, INSOL International & INSOL Asia, Singapore’s Second Minister for Law Mr Edwin Tong SC announced that Singapore will be undertaking “a root-and-branch study”^[2] of the judicial management regime in Singapore.

There are unique risks that lenders should consider when extending credit to a real estate investment trust (“REIT”). The rights that a lender might expect to have when lending to an incorporated company are not necessarily the same as when lending to a REIT.

Re Kirkham International Pte Ltd (in compulsory liquidation) [2023] SGHC 19 (Kirkham) has important practical implications for liquidators. The General Division of the High Court (High Court) held that a liquidator’s appointment of solicitors, when approval is required under section 144 of the Insolvency, Restructuring and Dissolution Act 2018 (IRDA), cannot be retrospectively authorised.

Background

Non-Performing Corporate Loan Toolkit for Banks

“To the man with a hammer, every problem looks like a nail.”