On Nov. 11, SIN Law introduced bill re simplified insolvency program.
SIN Law introduced bill to revamp and make the simplified insolvency program (SIP) a permanent feature in the Insolvency, restructuring and dissolution amendment bill.
Follows SIN Law Jan. 2024 extended application period for program, see #209179.
Program Modifications
Modified simplified debt restructuring program (SDRP) and simplified winding up program (SWUP) to be administered by licensed insolvency practitioners.
Expand eligibility to companies with total liabilities under SGD 2mn, no longer restricted to micro/small companies; streamlined SDRP application need only key documents.
Allows directors' declaration for SWUP if records incomplete; simplified voting process with single creditor class for debt repayment plans, reduced court involvement.
Reduced costs by limiting publication requirements to SIN Law website versus gazette.
Re SDRP, creditor protection initial moratorium period reduced from 90 to 30 days.
5-year blackout period for companies failing to complete SDRP before reapplication.
List of the differences between the old and new features can be found in the annex.
Next Steps
The bill has passed its first reading and will follow the legislative process.
