Asia: Insolvency/Bankruptcy/Re-Structuring

Restructuring and distressed transactions in Australia are being influenced by a number of key trends. These include but are not limited to the broader economic downturn; sector-specific challenges; access to capital; regulatory challenges; sustainability considerations; investment in technology; increased M&A activity; and continuing interest from private equity investors.

A critical issue that has arisen in recent jurisprudence is whether, and to what extent, the NCLT can examine allegations of fraud in the insolvency process. While the IBC aims at swift resolution, the presence of fraudulent intent in initiating or conducting insolvency proceedings challenges this efficiency

The Singapore Court of Appeal has reaffirmed how courts handle disputed debts involving arbitration clauses, while the Singapore International Arbitration Centre has introduced its Restructuring and Insolvency Arbitration Protocol. These developments significantly impact creditors and debtors when arbitration and insolvency proceedings intersect, establishing clearer boundaries for winding-up applications and strengthening protections against abuse of process.