Insights – Key takeaways from panel discussion on “R&I Inquisition – Your Questions, Expert Answers” from INSOL International Singapore Seminar 2024
An engaging and insightful panel discussion on “R&I Inquisition – Your Questions, Expert Answers” from INSOL International Singapore Seminar 2024 held at Fairmont Singapore, Raffles City Convention Centre on 27 July 2024. The seminar is a collaboration with INSOL Asia Hub and is part of the Singapore Convention Week.
DHC Capital Partner, David Chew acted as the “Quizmaster” with panel members, Claudia Cheah (Partner, Skrine, Malaysia), Glen Ho (National Turnaround and Restructuring Leader, Deloitte China), Jason Kardachi (Managing Director, Kroll Singapore), Naomi Moore (Partner and Global Co Chair, DLA Piper Australia) and Hajime Ueno (Partner, Nishimura & Asahi Japan).
Key takeaways from the panel discussion:
How can technology transform and improve restructuring and insolvency processes?
Facilitate remote and flexible working arrangements
Processing large amounts of unstructured data to facilitate financial analysis or investigation
Use of online portals to facilitate interactions and dissemination of information to creditors
Use of online tools by the judiciary to promote transparency (e.g. recording court hearings and posting on YouTube). However, it was noted that this could potentially cause more complexities in case management
Use of online platforms to reach out to as many potential buyers of distressed assets as possible (as an aside, platforms such as our marketplace, 363Xchange.com to connect buyers and sellers)
What can be done to the Judicial Management regime to increase the success of rescuing companies and avoiding Judicial Management being a precursor to winding up?
Earlier recognition by directors and management leading to earlier applications would result in better outcomes
Legislative improvements: (i) Pre-pack JMs – tools to facilitate pre-arranged sale of businesses using a quick in-and-out JM period of 1 to 5 days (similar to UK Administration pre-pack sale) and (ii) Removing the conflict of interest in having multiple appointments. That is, the Judicial Manager is not allowed to be appointed as Liquidator (and same for legal counsel appointed by Judicial Manager). This would result in the proposed incoming JM carefully considering whether a JM is needed or whether an immediate liquidation would better suited. Incoming JMs would then be fully aligned to complete a successful JM process.
What difficulties have you seen private credit funds face in exiting and recovering their investments in distressed companies?
Legal regimes across the region provide different levels of creditor protections and enforcement rights
First time for many private credit funds dealing with a default cycle. Are they ready to lead negotiations with borrowers and senior banks on a restructuring? Are they ready to enforce over collateral or take the keys to the company?
Will schemes of arrangement be the way forward for debtor companies in the region to restructure debt?
Schemes are a flexible tool and can be used in conjunction with new money investments and CRO and new director appointments
The moratorium is a very powerful tool to provide essential breathing room
Schemes can be completed in a timely manner when speed is of the essence via pre-pack schemes
DHC Capital Partner, David Chew was a member of the Organizing Committee and acted as Technical Co-Chair for INSOL International Singapore Seminar 2024.
About INSOL International
INSOL International is a world-wide federation of national associations of accountants and lawyers who specialise in restructuring, turnaround and insolvency. There are currently over 44 Member Associations with over 10,500 professionals participating as members of INSOL International.