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It's time to change the Asian mindset about corporate restructuring

Western financial centres see insolvency proceedings as gateways to potential business rescue. In Asia, insolvency is seen as a procedure ending in liquidation.

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Singapore has positioned itself as Asia's leading debt restructuring hub by enhancing its legal framework to make it relatively easy to rescue struggling companies.

IN ASIA, there has traditionally been a stigma associated with corporate insolvencies. The taint of insolvency can be hugely value-destructive; it can destroy the goodwill of the business, and brand the managers and controllers as failures and social outcasts.

Culturally, the problem is...

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