A proposed new bankruptcy code in Singapore that would resemble the US “Chapter 11” bankruptcy option would be good news for the debt restructuring market according to AlixPartners UK.
“This movement in Singapore is quite positive not just for the country but for the region as well, and we may see more restructurings take place on the basis of that,” said AlixPartners UK managing director Albert Stein at the Singapore Offshore Finance Forum, which was held in Singapore last Thursday March 16th.
Stein believed that the proposed change would make the restructuring process “more fluid”.
Several Singapore-listed offshore services companies are struggling. Swiber has gone bankrupt while Ezra Holdings has filed for Chapter 11 in the US. Stein believed this year and perhaps next, “we are going to get to the point where banks in Asia are going to be less forgiving”.