Singapore's adoption of the UNCITRAL Model Law on Cross-Border Insolvency was, on paper, a technical update. In practice, it has changed how cross-border restructurings are run.
Three things have changed.
First, the Singapore courts have signaled a more flexible approach to recognition. The recent decisions make clear that comity is not a one-way street — a debtor that engages substantively with foreign creditors is more likely to obtain recognition.
Second, parallel Chapter 15 proceedings in the U.S. are now common. A debtor seeking recognition in Singapore should plan for a concurrent Chapter 15 filing from day one.
Third, the protocol for coordination between courts has matured. The use of joint hearings and protocol letters is no longer unusual.
The practical implication: cross-border restructurings are now litigated on two tracks. Debtors that staff both tracks from the beginning close their plans on schedule.
Written by James Okonkwo, Partner.
This article is for general information only and is not legal advice.