S'Pore Incorporates Uncitral Law In Debt Restructuring

Singapore also enacted legislation based on the UNCITRAL Model Law on Cross-Border Insolvency as part of the enhancements to its debt restructuring and corporate rescue framework that were introduced in 2017

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Introduction

The UNCITRAL Model Law on Cross-Border Insolvency provides a useful framework for facilitating transnational restructurings.

This was demonstrated in the case of H&C S Holdings Pte Ltd v Glencore International AG [2019] EWHC 1459 (Ch), which is the first reported decision from the English Courts on the recognition of Singapore insolvency proceedings under section 211B of the Singapore Companies Act (Cap. 50) (the “Companies Act”) in England.

Salient Facts

Section 211B of the Companies Act is one of the provisions introduced via the Companies (Amendment) Act 2017 (No. 15 of 2017), which came into force on 23 May 2017, aimed at enhancing Singapore’s debt restructuring and corporate rescue framework.

On 20 February 2019, H&C S Holdings Pte Ltd (the “Company”) obtained an order from the High Court of the Republic of Singapore in HC/OS 93/2019 for moratorium relief under section 211B(1) of the Companies Act (the “Section 211B Order”) while the Company worked out a scheme of arrangement to be entered into with its creditors.

On 25 February 2019, the Company filed an application in the High Court of Justice Business and Property Courts of England and Wales for recognition of the Section 211B Order in England under the Cross-Border Insolvency Regulations 2006 (which adopts, with modifications, the UNCITRAL Model Law on cross-border insolvency) (the “