A review of the enhanced Singapore scheme of arrangement and a comparison against English schemes of arrangement and US Chapter 11 in the context of the marine and offshore sectors.
The Singapore government is seeking to make Singapore a debt restructuring centre akin to London and New York. The aim is to replicate the success it has had in making Singapore an international financial and arbitration centre.
This article looks at the key changes and contrasts the enhanced Singapore scheme of arrangement against the English scheme of arrangement and US Chapter 11.
In summary the changes:
- have made it easier for non-Singapore companies to take advantage of the Singapore debt restructuring regime;
- enhanced the legal framework for restructurings in Singapore by increasing the number and the potency of the restructuring 'tools' available;
- introduced a clear framework for courts to recognise and assist foreign insolvency proceedings; and
- represent a shift towards looking at restructurings from an international perspective.
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