International recognition of Singapore´s new restructuring framework

• Main Author: Aurelio GURREA-MARTINEZ
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: Commercial law; Corporate Insolvency; Restructuring Hub; Business Organizations Law; Commercial Law
• Online Access: https://ink.library.smu.edu.sg/sol_research/3705; https://ink.library.smu.edu.sg/context/sol_research/article/5663/viewcontent/international.pdf
• Institution: Singapore Management University

In the past years, Singapore has modernized its insolvency framework with the purpose of becoming an international hub for debt restructuring. One of the most significant reforms has affected the Singapore Scheme of Arrangement (SSoA). Under the new SSoA, debtors are allowed to remain in possession leading the restructuring process while enjoying the protection of an automatic moratorium with worldwide effects as well as a variety of tools imported from the US Chapter 11, including the availability of DIP financing, the restriction of ipso facto clauses, and a cross-class cramdown. Therefore, the new SSoA differs significantly from the typical scheme of arrangement existing in most Commonwealth jurisdictions.