Partner and Head of Restructuring & Insolvency, Meiyen Tan, was recently quoted in The Straits Times article titled, “Singapore well-placed to meet rise in debt restructuring demand amid Covid-19”.
Speaking on note holders’, who are a class of creditors of PT MNC Investama, go-ahead last week for a Jakarta-based conglomerate’s scheme to restructure US$231 million (S$311 million) of secured notes due next year, Meiyen said:
“PT MNC had earlier this year obtained a moratorium against creditor enforcement on the company’s assets from the Singapore High Court.”
“This pre-packaged arrangement procedure is particularly suited for less contentious restructurings where the significant majority of the company’s creditors are supportive of the scheme. In such cases, the procedure saves the time and costs associated with the convening of a statutory meeting, which also includes a court application for leave to convene the meeting.”
“We have found the pre-packaged scheme of arrangement procedure to be popular with Indonesian companies seeking to restructure their bonds issued on SGX – we are currently advising at least one other major Indonesian group of companies in relation to a similar procedure.”
“The application by PT MNC for moratorium protection under the IRDA is significant, because it is the first Indonesian company known to have made such an application.”
“The High Court decision on the application earlier this year lends clarity and opens the door to other foreign companies in similar positions to seek to restructure in Singapore, and to apply for the moratorium protection that is available under Singapore’s restructuring regime.”
Meiyen also added that Indonesia-based Modernland group very recently obtained moratorium protection in Singapore and is similarly seeking to adopt a pre-packaged scheme of arrangement.
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