In the news – Singapore omnibus legislation set to come into force (Global Restructuring Review)
Read on for the GRR article on the Insolvency, Restructuring and Dissolution Act (“IRDA”), which is set to come into force on 30 July 2020.
We commented on:
Restrictions on ipso facto clauses to limit certain contractual rights that are triggered when restructuring proceedings are commenced – “It remains to be seen whether the restrictions on ipso facto clauses will significantly improve the ability to restructure, as IRDA does not prevent counterparties from terminating or modifying for other breaches that may be in place.”
New licensing and regulatory regime – “will raise the standard of practitioners in Singapore and represents another key piece in developing local infrastructure to support the city-state’s ambitions to become a prominent restructuring hub.”
Development of regime in Singapore – “The Companies Act amendments in 2017 was a big game changer. The increased use of super priority rescue financing and the extra territorial moratorium are key features of Singapore’s new regime that provide companies with protection from creditors to put in place plans or fund working capital. Overall, IRDA builds on this and further promotes debtor led restructurings.”
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