New bill to ease hassle for small firms seeking to restructure or wind up

Singapore

WITH the number of financially distressed companies expected to rise as debt moratoriums wear off, the government is seeking to make it easier for micro and small enterprises to restructure their debts or wind up their business.

A bill will be introduced in Parliament this month to set up the Simplified Insolvency Programme (SIP). This will enable eligible micro and small enterprises to restructure their debts or wind up the company through two temporary processes adapted from the existing framework in the Insolvency, Restructuring and Dissolution Act (IRDA).