28 November, 2017
In the first judgment under Singapore’s new ‘super priority’ DIP financing regime since amendments to the Companies Act came into effect earlier in 2017, the Singapore High Court declined to grant priority status to funds to be advanced to the Attilan Group.
The Singapore regime is the first to import US Chapter 11-style DIP priority funding mechanisms into a jurisdiction with primarily English-law based corporate law and insolvency regimes.
The judgment discusses how Singapore provisions align with established principles under US Bankruptcy Code provisions and case law.
Amongst other things, the Court emphasised the importance of applicants first taking reasonable steps to raise finance on a non-priority basis (and producing evidence of such efforts) before seeking priority rescue funding. The Court also considered whether advances under pre-existing agreements can qualify as rescue financing. To read more, click here.
For further information, please contact:
Paul Apathy, Partner, Herbert Smith Freehills
paul.apathy@hsf.com
