Singapore has grown into one of the leading jurisdictions for international debt restructuring. This has developed synergistically with its position as an international financial centre and preferred venue of international dispute resolution, particularly with the Singapore International Arbitration Centre, the Singapore International Commercial Court, and the Singapore International Mediation Centre. The recent reforms to Singapore’s insolvency and restructuring framework have allowed Singapore to compete with other leading global restructuring and insolvency jurisdictions such as the U.S., the U.K. and Hong Kong.
For the most part, in its push to become a leading regional and global restructuring hub, Singapore is very receptive to foreign companies restructuring their debts in Singapore. The IRDA allows unregistered foreign companies to be wound up if they have a “substantial connection” to Singapore. Recent case law has shown that the Singapore courts are willing to adopt a flexible test to determine whether a foreign company has a “substantial connection” with Singapore.
On Indonesia’s part, the courts have, for many years, generally been slow in recognising foreign judgments and have emphasised the principle of national sovereignty in refusing recognition of foreign judgments and arbitral awards. However, in a recent development, judicial attitudes in Indonesia appear to be changing.
This update includes a look at the Central Jakarta Commercial Court’s decision in PT Bank Maybank Indonesia Tbk v PT Pan Brothers Tbk (Judgment No. 245/Pdt.Sus-PKPU/2021/PN.Niaga.Jkt.Pst), and the growing trend of Indonesian companies utilising Singapore as their centre for restructuring.
If you would like information or assistance on the above, you may wish to contact the Partner at WongPartnership or Lubis Santosa & Maramis whom you normally deal with or the following:
d +65 6416 8106
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d +65 6416 2467
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Gerald Saratoga SARAYAR
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