On 30 July 2020, the ipso facto regime formally came into effect in Singapore. Briefly, the rule against ipso facto clauses prevents contractual counterparties from asserting their contractual counterparties from asserting their contractual rights merely because the company is insolvent. The article, written by Co-Heads of Restructuring & Insolvency, Keith Han and Meiyen Tan, analyses the provision in context, in order to determine the scope of its effect on contractual counterparties to insolvent companies, and how it is likely to be applied and developed in Singapore. Further, a comparative analysis of the current exceptions to the ipso facto regime is conducted to explore how similar exceptions might be introduced in Singapore in the future.
To read the full article, click here.