• Login
    • Advanced search
    • Title
    • Channel
    • Module
  • Home
  • Industry
    •  

      • Aerospace, Defense, and Government Services
      • Automotive
      • Consumer
      • Diversified Industrials
      • Education
      • Energy and Natural Resources
      • Financial Institutions
    •  

      • Insurance
      • Life Sciences and Health Care
      • Private Capital
      • Real Estate
      • Sports, Media and Entertainment
      • Technology and Telecoms
      • Transport and Logistics
  • Practice
    • Corporate & Finance

      • Banking and Loan Finance
      • Blockchain
      • Business Restructuring and Insolvency
      • Capital Markets
      • Corporate Governance and Public Company Representation
      • Infrastructure, Energy, Resources, and Projects
      • Leveraged and Acquisition Finance
      • Mergers and Acquisitions
      • Pensions
      • Private Equity, Venture Capital and Investment Funds
      • Real Estate
      • Real Estate Investment Trusts (REITs)
      • Tax
      • Transfer Pricing
    • Global Regulatory

      • Administrative and Public Law
      • Antitrust and Competition
      • Communications, Internet, and Media
      • Education
      • Energy Regulatory
      • Environment and Natural Resources
      • Financial Services
      • Food Law
      • Gaming Law
      • Government Contracts and Public Procurement
      • Government Relations and Public Affairs
      • Health
      • Immigration
      • International Trade and Investment
      • Medical Device and Technology Regulatory
      • Pharmaceuticals and Biotechnology Regulatory
      • Privacy and Cybersecurity
      • Space and Satellite
      • Strategic Operations, Agreements and Regulation
      • Transportation Regulatory
    • Intellectual Property

      • Copyright
      • Designs
      • Domain Names
      • IP and Technology Transactions
      • IP Enforcement
      • Patents
      • Trade Secrets and Confidential Know-how
      • Trademarks and Brands
      • Unfair Competition
    • Litigation, Arbitration, and Employment

      • Business and Human Rights
      • Construction and Engineering
      • Corporate and Securities Litigation
      • Employment
      • International Arbitration
      • Investigations, White Collar, and Fraud
      • Products Law
      • Risks, Disputes, and Litigation
  • Comparative guides
  • Engage Premium
  • Login
  • Register
Hogan Lovells Engage 5.6.13
      • Title
      • Channel
      • Module
    • Hit ENTER to search in content
    • Advanced search
    • Login
  • Home
  • Industry
    •  

      • Aerospace, Defense, and Government Services
      • Automotive
      • Consumer
      • Diversified Industrials
      • Education
      • Energy and Natural Resources
      • Financial Institutions
    •  

      • Insurance
      • Life Sciences and Health Care
      • Private Capital
      • Real Estate
      • Sports, Media and Entertainment
      • Technology and Telecoms
      • Transport and Logistics
  • Practice
    • Corporate & Finance

      • Banking and Loan Finance
      • Blockchain
      • Business Restructuring and Insolvency
      • Capital Markets
      • Corporate Governance and Public Company Representation
      • Infrastructure, Energy, Resources, and Projects
      • Leveraged and Acquisition Finance
      • Mergers and Acquisitions
      • Pensions
      • Private Equity, Venture Capital and Investment Funds
      • Real Estate
      • Real Estate Investment Trusts (REITs)
      • Tax
      • Transfer Pricing
    • Global Regulatory

      • Administrative and Public Law
      • Antitrust and Competition
      • Communications, Internet, and Media
      • Education
      • Energy Regulatory
      • Environment and Natural Resources
      • Financial Services
      • Food Law
      • Gaming Law
      • Government Contracts and Public Procurement
      • Government Relations and Public Affairs
      • Health
      • Immigration
      • International Trade and Investment
      • Medical Device and Technology Regulatory
      • Pharmaceuticals and Biotechnology Regulatory
      • Privacy and Cybersecurity
      • Space and Satellite
      • Strategic Operations, Agreements and Regulation
      • Transportation Regulatory
    • Intellectual Property

      • Copyright
      • Designs
      • Domain Names
      • IP and Technology Transactions
      • IP Enforcement
      • Patents
      • Trade Secrets and Confidential Know-how
      • Trademarks and Brands
      • Unfair Competition
    • Litigation, Arbitration, and Employment

      • Business and Human Rights
      • Construction and Engineering
      • Corporate and Securities Litigation
      • Employment
      • International Arbitration
      • Investigations, White Collar, and Fraud
      • Products Law
      • Risks, Disputes, and Litigation
  • Comparative guides
  • Engage Premium
  • Login
  • Register
  1. News
  2. Recent developments in Singapore’s quest to become Asia’s international debt restructuring hub

Recent developments in Singapore’s quest to become Asia’s international debt restructuring hub

15 February 2022
    • Share by email
    • Share on
    • Twitter
    • LinkedIn
    • Get link
    • Get QR Code
    • Download
    • Print

Singapore is getting serious about becoming the region’s international insolvency hub.  In this inaugural podcast from the International Insolvency Institute, Hon. Kevin Carey (Ret.) of Hogan Lovells discusses Hon. Christopher S. Sontchi‘s forthcoming move from Delaware bankruptcy judge to International Judge of the Singapore International Commercial Court (SICC).

Index
  1. Singapore as an arbitration, mediation and legal centre
  2. Insolvency mediation as a restructuring tool
  3. China Fishery, mediate or liquidate
  4. Thai take-away?

Judge Sontchi was appointed Judge of the United States Bankruptcy Court, District of Delaware in 2006.  When he retires from the bench on 30 June 30 2022, he will take on a new role handling insolvency cases alongside Singaporean judges who have insolvency experience and also sit on the SICC.

The move is all part of a carefully orchestrated plan to develop Singapore into the jurisdiction of choice to hear complex, cross-border insolvency and restructuring matters for corporates in the region.  When Singapore revised its insolvency laws in 2017, it looked at various international insolvency regimes for inspiration and a number of the restructuring tools since adopted have their roots in US bankruptcy law.

Singapore as an arbitration, mediation and legal centre

“We’re hoping to attract international insolvencies primarily in the Southeast Asia and South Asia region,” he said. “There’s a lot of interconnection with Singapore in the region because of the amount of financing that comes out of Singapore, because of the size of the Singapore economy and because of the long-standing legal tradition of Singapore.”  In addition to working for the SICC, Judge Sontchi will also be privately engaging in, among other things, conducting mediations and arbitrations which are becoming increasingly popular in the region.

Insolvency mediation as a restructuring tool

Singapore has sought to promote insolvency mediation as a restructuring tool but as far as the authors are aware, it has yet to be ordered in any restructuring being overseen by the Singapore courts.  While in recent times the Singapore courts have strongly encouraged mediation by parties involved in insolvency-related matters, the courts have not compelled parties in restructuring proceedings to mediate based on the principle that alternative dispute resolution should be voluntary.  However Asian companies have been the subject of mediation orders in U.S. bankruptcy matters with positive outcomes. 

China Fishery, mediate or liquidate

In China Fishery Group, a company listed on the Singapore Exchange Mainboard and currently subject to U.S. Chapter 11 proceedings, Judge Garrity ordered certain parties to participate in mediation and appointed his colleague, Judge Robert Drain (who has since announced his own intention to retire), to deal with disputes which represented a logjam in getting a plan agreed.  After more than five years in bankruptcy, a restructuring plan was finally confirmed in June 2021 where Judge Garrity paid tribute to the efforts of Judge Drain and the successful mediation of various disputes which had “helped smooth the path” to confirming the plan.

Thai take-away?

Another example of Asian companies successfully using mediation is that of Thai-owned gourmet retailer, Dean & Deluca which filed for Chapter 11 in 2020.  After the official committee of unsecured creditors objected to the company’s proposed restructuring plan, the court approved the company’s motion to appoint Judge Carey as the mediator.  The mediation was successful in unlocking the impasse and the company went on to have its revised restructuring plan approved and confirmed.

Insolvency tourism

Whilst forum shopping isn’t new, Singapore’s efforts to modernise its insolvency framework to facilitate foreign companies using its restructuring laws is to be applauded.  Further enhancements by bringing in judicial heavyweights such as Judge Sontchi undoubtedly bodes well for Singapore’s restructuring ecosystem. 

In the interim, there’s presumably some reading-in to be done for Judge Sontchi because just as laws evolve, so does the rogue debtors’ playbook.  Keeping up with the tactics employed by certain emerging-market debtors in the region is sure to make this role an interesting new chapter in Judge Sontchi’s insolvency career.

The podcast can be accessed on Spotify (soon on Apple and Google Play) and at this link.

 

 

Authored by Jonathan Leitch, Nick Williams, Carol Hartopp Hall, Kevin Carey.

Contacts
Jonathan Leitch
Partner
Hong Kong
Chris Dobby
Partner
Hong Kong
Nick Williams
Partner
Singapore
Kevin Carey
Partner
Philadelphia
Carol Hartopp Hall
Counsel
Singapore
Index
  1. Singapore as an arbitration, mediation and legal centre
  2. Insolvency mediation as a restructuring tool
  3. China Fishery, mediate or liquidate
  4. Thai take-away?
Additional Resources
  • Events and Podcasts
Keywords #specialsituations, #insolvencyhub, #recognition, #SingaporeInternationalCommercialCourt, #crossborder, #debt, #restructuring, #insolvency
Languages English
Topics Restructuring and Workouts, Insolvency and Bankruptcy, Risks, Disputes and Litigation, Financial Services Litigation and Disputes, Commercial Arbitration
Countries Australia, People's Republic of China, Hong Kong, Indonesia, Japan, Singapore, Vietnam, United States
Delete Comment ?

Are you sure want to delete comment ?

Get link
Embed
Share by email
Get QR Code

Scan this QR Code to share this content