Singapore Exchange Regulation Proposes Restructuring Process Rule Changes for Financially Distressed Listed Companies Including Removing Need for Shareholders to Vote on Major Disposal of Assets by Judicial Management or Liquidation to Allow Faster Realisation of Assets, Changes Will Increase Chances of White Knight Rescues & Trading Resumptions, Increase Value to Shareholders Without Further Depleting Finances
24th February 2024 | Hong Kong
The Singapore Exchange Regulation (SGX RegCo) is proposing restructuring process rule changes for financially distressed listed companies including removing the need for shareholders to vote on major disposal of assets by judicial management or liquidation to allow faster realisation of assets. The proposed changes will increase chances of white knight rescues & trading resumptions, and increase value to shareholders without further depleting finances of the listed company. SGX RegCo: “Singapore Exchange Regulation (SGX RegCo) is proposing rule changes aimed at facilitating the restructuring process for SGX-listed companies under Singapore’s Insolvency, Restructuring and Dissolution Act 2018 (IRDA). In summary, the changes, if implemented, will enable issuers to restructure more efficiently and lessen the regulatory burden when they are trying to manage their financial affairs and meet time-sensitive milestones. For instance, SGX RegCo is proposing that shareholders need not vote on a major disposal undertaken as part of judicial management or liquidation of the issuer under IRDA. This will align our rules with IRDA, as well as allow for the quicker realisation of assets. SGX RegCo also proposes to, among others: 1) provide guidance to issuers on circumstances where a financially distressed issuer can apply to SGX RegCo to allow its listed securities to continue or resume trading, 2) require an immediate announcement when a financially distressed issuer or any of its subsidiaries undergo a court-supervised moratorium, 3) exclude a financially distressed company under moratorium pursuant to IRDA from announcing its quarterly financial statements. The public consultation is open till 22 March 2024 and can be found here.” More info below:
“ Singapore Exchange Regulation Proposes Restructuring Process Rule Changes for Financially Distressed Listed Companies Including Removing Need for Shareholders to Vote on Major Disposal of Assets by Judicial Management or Liquidation to Allow Faster Realisation of Assets, Changes Will Increase Chances of White Knight Rescues & Trading Resumptions, Increase Value to Shareholders Without Further Depleting Finances “
Tan Boon Gin, CEO of SGX RegCo: “IRDA aims to smoothen and speed up the restructuring of financially distressed companies. This may increase the chances of white knight rescues and trading resumptions. These outcomes, if they materialise, will be of more value to shareholders than years of proceedings that will further deplete distressed companies’ scarce finances.”
Singapore Exchange Regulation Proposes Restructuring Process Rule Changes for Financially Distressed Listed Companies Including Removing Need for Shareholders to Vote on Major Disposal of Assets by Judicial Management or Liquidation to Allow Faster Realisation of Assets, Changes Will Increase Chances of White Knight Rescues & Trading Resumptions, Increase Value to Shareholders Without Further Depleting Finances
23rd February 2024 – Singapore Exchange Regulation (SGX RegCo) is proposing rule changes aimed at facilitating the restructuring process for SGX-listed companies under Singapore’s Insolvency, Restructuring and Dissolution Act 2018 (IRDA).
In summary, the changes, if implemented, will enable issuers to restructure more efficiently and lessen the regulatory burden when they are trying to manage their financial affairs and meet time-sensitive milestones. For instance, SGX RegCo is proposing that shareholders need not vote on a major disposal undertaken as part of judicial management or liquidation of the issuer under IRDA. This will align our rules with IRDA, as well as allow for the quicker realisation of assets.
SGX RegCo also proposes to, among others:
- provide guidance to issuers on circumstances where a financially distressed issuer can apply to SGX RegCo to allow its listed securities to continue or resume trading.
- require an immediate announcement when a financially distressed issuer or any of its subsidiaries undergo a court-supervised moratorium.
- exclude a financially distressed company under moratorium pursuant to IRDA from announcing its quarterly financial statements.
The public consultation is open till 22 March 2024 and can be found here.
Sign Up / Register
Caproasia Users
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2024 Investment Day
- March 2024 - Hong Kong
- March 2024 - Singapore
- July 2024 - Hong Kong
- July 2024 - Singapore
- Sept 2024 - Hong Kong
- Sept 2024 - Singapore
- Oct 2024 - Hong Kong
- Nov 2024 - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
