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Classification of Under-Secured Deficiency Claims in Schemes of Arrangement

Blossom Hing, Chan Wei Meng & Mitchell Yeo

(2023) 35 SAcLJ 501

Traditionally, for the purposes of voting in schemes of arrangement, secured creditors are classed separately from the ordinary unsecured creditors. However, a recent practice seems to have emerged in Singapore schemes of arrangement where under-secured creditors have, to the extent of their deficiency claims, been placed in the same voting class as the ordinary unsecured creditors. This article examines the case law and suggests guiding principles informing when such a form of classification may be appropriate.