Abstract:
In 2017, a cross-class cramdown mechanism was introduced into the Singapore framework for corporate rescues. The new mechanism allows the court to bind all creditors to a compromise, even if entire classes of creditors object. While available for years, there is still no reported judgment on the mechanism. This is in contrast to the burgeoning jurisprudence on the UK cross-class cramdown mechanism, which was introduced in 2020 under Pt 26A of the UK Companies Act 2006. In anticipation of the first Singapore judgment on this topic, this article analyses the substantive requirements and safeguards for a cross-class cramdown in Singapore, and attempts to draw some guidance from the latest UK decisions.