Empirical and Comparative Analysis of Singapore Schemes of Arrangement

Wai Yee Wan, Casey G. Watters, Gerard McCormack

Research output: Contribution to journalOnline ResourceResearch

Abstract

[Extract]
In 2017, Singapore adopted sweeping reforms to its insolvency regime aimed at increasing Singapore’s attractiveness as a regional restructuring hub. Central to these reforms is the transplantation (with modification), of US Chapter 11 characteristics into the scheme framework aimed at equipping the flexible scheme regime with tools important to insolvent restructurings such as the moratorium, rescue financing and cross-class cramdown. Our paper ‘Schemes of Arrangement in Singapore: Empirical and Comparative Analyses’, recently published in the American Bankruptcy Law Journal, addresses the key question on how well the English-modelled scheme has served as an effective debt-restructuring tool in Singapore, both pre- and post-2017 reforms. Existing bankruptcy scholarship considers that the core of any corporate reorganization theory is how the value of the restructured enterprise should be divided among the various claims and interests, and there are several studies that examine how well the restructuring regime works in this context. In assessing how well the scheme has functioned, we make comparisons with the English schemes and Chapter 11 (from which the 2017 reforms have been derived). We evaluate the processes (such as the length of time for the restructuring to be approved by the court, costs and the information made available for the creditors to make voting decisions) and substantive outcomes (such as the haircut and dilution to shareholders’ interests) based on a mix of empirical and qualitative data.
Original languageEnglish
JournalOxford Business Law Blog
Publication statusPublished - 11 Dec 2020

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