Singapore Faces Rising Tide of Bad Debt With Record Bonds Maturing

Singapore firms are likely to see more soured debt as the trade-reliant economy takes a hit from U.S.-China tensions. That’s the view of debt restructuring experts, for whom more bad debt could mean increased business, Bloomberg News reported. Singapore’s government cut its forecast for economic growth this year to almost zero, and weak export data have stoked fears of a recession. The nation has already been rocked by the high-profile collapse of water treatment firm Hyflux Ltd. “We could see a tide of distressed debt in Singapore,” said Shaun Langhorne, a restructuring lawyer and partner in Singapore at Hogan Lovells Lee & Lee. “A number of companies have significant amounts of debt.” An increase in soured debt is likely to spell more pain for lenders and bond investors. Read more