MinLaw extends application period for Simplified Insolvency Programme to January 2024

THE Ministry of Law (MinLaw) on Thursday (Jul 28) announced a final extension of the application period for the Simplified Insolvency Programme (SIP), which was due to close on Thursday. The deadline is now 18 months later, on Jan 28, 2024.

Introduced in January last year, the SIP offers eligible micro and small companies that face financial difficulties a simpler, faster and lower cost insolvency process to restructure their debts and rehabilitate their business, or to wind up. The programme aims to optimise resources and potentially maximise returns to creditors.

Viable but distressed companies can restructure their debts with their creditors via the Simplified Debt Restructuring Programme. Those that are unviable can go through the Simplified Winding Up Programme.

The initial application period for the SIP was from Jan 29, 2021 to Jul 28, 2021. This was later extended by a year, before Thursday’s final extension.

Even as pandemic conditions ease, the business environment is still challenging due to geopolitical events and the uncertain global economic outlook, MinLaw said in its press release.

“The resulting economic headwinds from rising inflation, rising interest rates and supply chain disruptions continue to place pressure on micro and small companies that are still in their initial stages of recovery after the gradual reopening of the borders on Apr 1,” the ministry noted.