Mr Shen Yi Thio S.C., Mr Patrick Ang and I share our views, reported in the Straits Times here, in relation to the new insolvency and restructuring laws that are set to come into effect sometime either in the second half of 2017 or in the early part of 2018.
The key features of the revised restructuring regime include (but are not limited to):-
- Super priority for rescue financing;
- Moratoriums with extra-territorial effect, which include enjoining creditors from realising their security interests; and
- An expedited track for scheme approval – without the need for a creditors’ meeting – where there is clear overwhelming support.
(1) in particular is a fundamental change to our laws, which in this author’s view will be a “market maker” for PE / distressed debt funds to invest in economically sound, but financially challenged companies.
New laws will help ailing firms stay afloat