Restructuring and Insolvency Lawyers in Singapore

Legislation on restructuring and insolvency in Singapore

The main law governing insolvency is the Insolvency, Restructuring and Dissolution Act 2018 (IRDA), in force since 30 July 2020. The IRDA provides for corporate insolvency, and it also sets out (replacing the Bankruptcy Act) the legal means for the personal insolvency procedures. However, certain aspects of the Companies Act related to the judicial management and insolvency of companies have been moved into the IRDA and can be enforced on corporate debtors.

With years of experience in restructuring and insolvency matters, our Singapore lawyers can provide you more information about the applicable legislation on insolvency.

Insolvency of companies in Singapore

Insolvency refers to a Singapore company’s incapacity to pay its debts. Under the new Insolvency Act, businesses unable to liquidate any outstanding amount are deemed unable to pay their debts, for example, if a statutory demand for more than S$15,000 remains unpaid for 3 weeks. Companies in Singapore that cannot pay their debts can be subject to compulsory or voluntary liquidation.

Insolvent companies can appoint a receiver which will be in charge with drafting a plan in order to pay the creditors in order to avoid bankruptcy or liquidation. The plan can include voluntary agreements or between the creditors and the debtor or repayment schemes.

There is no need to conclude a contract with the receiver and a court order is required for compulsory winding up and, in most cases, for judicial management.

Our insolvency attorneys in Singapore can provide you with information about the steps to be followed in any of the procedures above. Our lawyers can also help individuals in personal injury claim in Singapore. 

Restructuring a Singapore company

A company facing financial difficulties can first choose restructuring solutions before starting the insolvency procedure. There are two main types of restructuring a Singapore company can appeal to:

• –          operational restructuring which implies the measurement of the company’s operations and the development of improvement strategies;
• –          financial restructuring which implies the analysis of the company’s financial situation in order to establish the debt the business can withstand upon restructuring.

Corporate restructuring can be achieved by making a scheme of arrangement or by judicial management. Our law firm in Singapore can help you draft a restructuring plan for you company, if it struggles with financial problems.

For complete information about the solutions available for company insolvency and restructuring, do not hesitate to contact our insolvency lawyers in Singapore.