In forceAmended2020 Revised Edition

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Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 5A · Simplified Restructuring of Debts

72F. Requirements for entry into simplified debt restructuring programme

Amended

Last amended by an amending law of 2025. 2 amendments in all.

(1)

A company may enter into the simplified debt restructuring programme under section 72E only if both of the following requirements are met: (a)the company meets the eligibility criteria set out in subsection (2); (b)there is no circumstance in subsection (3), known to the Restructuring Adviser, that makes the company unsuitable for entry into the simplified debt restructuring programme.

(2)

For the purposes of subsection (1)(a), the eligibility criteria are as follows:

(a)

[Deleted by Act 3 of 2025 wef 29/01/2026]

(b)

[Deleted by Act 3 of 2025 wef 29/01/2026]

(c)

[Deleted by Act 3 of 2025 wef 29/01/2026]

(d)

the liabilities of the company (including contingent and prospective liabilities, and any liabilities to any related party of the company) do not exceed $2 million (or any amount that may be prescribed in substitution by the Minister by order in the Gazette);

(da)

within the period of 60 months immediately before the proposed date of lodgment of the notice of its entry into the simplified debt restructuring programme under section 72E, the company has not —

(i)

previously entered the programme under this Part, or been accepted into the programme under this Part as in force immediately before the date of commencement of section 7 of the Insolvency, Restructuring and Dissolution (Amendment) Act 2025; and

(ii)

failed to have the debt restructuring proposal approved by its creditors or the compromise or arrangement approved by the court, as the case may be;

(e)

any other criteria as may be prescribed by the Minister by order in the Gazette.

(3)

For the purposes of subsection (1)(b), each of the following is a circumstance that makes a company unsuitable for entry into the simplified debt restructuring programme:

(a)

the company is being wound up pursuant to —

(i)

an order for the winding up of a company under section 216(2)(f) of the Companies Act 1967;

(ii)

an order for winding up made under section 124 (or any previous written law corresponding to that provision); or

(iii)

a resolution passed for the winding up of a company under section 160 (or any previous written law corresponding to that provision); (b)the company is in judicial management —

(i)

within the meaning of section 88(2); or

(ii)

pursuant to an application made under the repealed section 227B(1) of the Companies Act 1967 as in force before 30 July 2020;

(c)

an application has been made by or in respect of the company under any of the following provisions and the application is pending:

(i)

section 210(1), (4) or (10) of the Companies Act 1967;

(ii)

section 64(1) (or any previous written law corresponding to that provision); (iii)section 71 (or any previous written law corresponding to that provision);

(iv)

section 91 (or any previous written law corresponding to that provision); (v)section 124 (or any previous written law corresponding to that provision);

(d)

an order under section 210(10) of the Companies Act 1967, one or more orders under section 64(1) (or any previous written law corresponding to that provision) or an automatic moratorium mentioned in section 64(8) (or any previous written law corresponding to that provision), is in force in relation to the company;

(e)

a provisional liquidator of the company has been appointed under section 161 (or any previous written law corresponding to that provision);

(f)

an interim judicial manager has been appointed by the Court under section 92 (or any previous written law corresponding to that provision) or by the company under section 94(3), and the term of the appointment of the interim judicial manager has not ended;

(g)

the company has passed a special resolution authorising entry into the simplified winding up programme under section 250D;

(h)

the company (with the assistance of a Restructuring Adviser) is unlikely to be able to formulate a proposed compromise or arrangement with its creditors, or obtain the agreement of two-thirds majority in value of its creditors to the proposed compromise or arrangement, within the moratorium period after the company’s entry into the simplified debt restructuring programme;

(i)

[Deleted by Act 3 of 2025 wef 29/01/2026]

(j)

[Deleted by Act 3 of 2025 wef 29/01/2026]

(k)

[Deleted by Act 3 of 2025 wef 29/01/2026]

(l)

any other circumstances as may be prescribed by order in the Gazette.

(4)

Any order made under subsection (2)(d) or (e) or (3)(l) must be presented to Parliament as soon as possible after publication in the Gazette.

(5)

[Deleted by Act 3 of 2025 wef 29/01/2026]