The Ministry of Justice has published nine suggestions on improving Singapore's corporate debt restructuring and insolvency system and publicly solicited opinions.

These recommendations include enabling debtors to seek debt restructuring through application for judicial administration, encouraging judicial administration fees including the “successful restructuring fee”, the abolition of debt restructuring plans requires creditor support from at least three-quarters of the debt, and the adoption of relevant model laws of the United Nations.

The proposals were proposed by the Committee to enhance Singapore's Corporate Restructuring and Insolvency Regimes (hereinafter referred to as the Committee), and the public consultation will end on April 8 this year.

Insolvency is also called insolvency, which refers to the loss of debt repayment. It is different from bankruptcy, which refers to inability to repay as determined by law. Usually the debtor finds inability to repay and file for bankruptcy protection.

The Ministry of Justice pointed out in its release on Tuesday (March 11) that the task of the committee it convened is to consider various measures to strengthen the framework for corporate debt restructuring and insolvency in Singapore, and to attract more international users to take advantage of Singapore's corporate restructuring and insolvency in Singapore. The committee members come from all fields of the industry ecosystem, academia and government. The last time the government revised this framework in 2018.

Further reading

The number of bankruptcies has dropped significantly and the rise in bankruptcy filings has caused concerns

The number of bankruptcies has dropped significantly and the rise in bankruptcy filings has caused concerns

Assistance with financial difficulties in enterprises Ministry of Law hopes to retain simplified debt restructuring and liquidation procedures

Assistance with financial difficulties in enterprises Ministry of Law hopes to retain simplified debt restructuring and liquidation procedures

It said the Commission had completed its work and published a report detailing the Commission's views, views and recommendations on the proposed revisions. The Committee has put forward nine recommendations, which are divided into four categories:

1. Strengthen the judicial management system;

2. Improve cross-category enforcement (cramdown) in schemes of arrangements;

3. Improve the framework and tools for efficient debt restructuring;

4. Adopt the Model Law on Enterprise Group Insolvency and the Model Law on Recognition and Enforcement of Insolvency-Related Judgments by the United Nations Commission on International Trade Law (UNCITRAL).

The public can download the committee’s report and submit their opinions from the Internet from now on (https://go.gov.sg/public-consultation-on-the-rni-committee-report).