Hyflux case cited to show benefits of new insolvency, restructuring law

Singapore

SHORTLY after filing for a moratorium to support its restructuring proceedings, certain creditors of Hyflux declared an event of default had occurred. Based on this, the creditors exercised their contractual rights, such as the acceleration of repayment terms and set-off rights in respect of the debts owing to Hyflux.

This made Hyflux's financial situation worse.

If a similar situation arises in future, the Insolvency, Restructuring and Dissolution Bill passed into law on Monday,…