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Creditor Schemes of Arrangement and Dissenting Creditor Protection

Mohan Gopalan

(2018) 30 SAcLJ 902

In 2014 and 2017, changes were made to the statutory provisions which govern the use of schemes of arrangement in debt restructurings in Singapore. This article looks at three of those changes, which relate to the headcount test, cram-downs and pre-packs. These changes were intended to promote debt restructurings, but have also diluted some of the protections that were previously available to dissenting creditors. This reflects a shift in balance towards favouring the policy objectives of promoting restructurings and away from the protection of dissenting creditors’ rights, but various safeguards continue to ensure that the balance remains fair.