Singapore Gives Bondholders a New Way to Chase Default Losses
- Legal changes to allow outside funding in insolvency cases
- Creditors to gain if liquidators claw back funds: IMF Bentham
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Singapore is giving liquidators of insolvent companies a new tool to retrieve funds for bondholders and other creditors.
Court-appointed managers will now be able to seek funding from investors unrelated to the case to pay the cost of pursuing claims, in exchange for part of the proceeds. That change came under the Insolvency, Restructuring and Dissolution Act, which was passed by lawmakers on Oct. 1.