UK Court Recognizes Singapore Law for Debt Restructuring

The High Court of England and Wales has recognized Singapore’s new moratorium law for companies unable to pay their creditors, Vantage Asia reported. The ruling is positive for debt workouts across different jurisdictions and a boost to the city-state’s ambition to become Asia’s debt restructuring hub. Rajah & Tann Singapore and the London office of US law firm Lord Locke said the High Court of Justice Business and Property Court of England and Wales had on 25 March 2019 recognized the moratorium relief granted by the Singaporean court to their client H&C S Holdings under section 211B(1) of the Companies Act as foreign main proceedings under the UNICITRAL Model Law. This is the first time a court outside Singapore has recognized section 211B of the Companies Act, which deals with the enhanced moratorium in relation to a court-sanctioned arrangement or compromise (known as a scheme of arrangement) between a company and its creditors when the former is in distress or insolvent. Read more