When Restructuring And Insolvency Regimes Collide

Singapore's economy is expected to see slower growth in 2023 after its rapid recovery from the pandemic in 2022, with the Ministry of Trade and Industry recently narrowing the GDP growth forecast for the year.¹ As industries continue to feel the pinch of high inflation and interest rates, creditors and debtors alike may be considering appropriate solutions for companies which struggle to pay their debts.

In this article, we discuss a recent case which reflects how the Singapore Courts favour the restructuring of businesses while giving regard to creditors' interests. In Yap Sze Kam v Yang Kee Logistics Pte Ltd [2023] SGHC 43,² the Singapore High Court had the opportunity to consider an interesting interplay between the judicial management and receivership regimes. The Court declined to grant judicial management orders, on the basis that this would not be in the interests of the creditors considered as a whole, given the progress which have been made by the