Singapore legislation
Regulation 100
of Insolvency, Restructuring and Dissolution (Corporate Insolvency and Restructuring) Rules 2020
Regulation 100
Secured creditor required to give up security
Subregulation 1
The liquidator may, within 28 days after a proof of debt estimating the value of a secured creditor’s security has been used to vote at a meeting of creditors, require the secured creditor to give up the security for the benefit of the company’s creditors generally on payment to the secured creditor of —
the estimated value; and
an additional 20% of the estimated value.
Subregulation 2
A secured creditor may, after having used a proof of debt that estimated the value of the security held by the creditor to vote in a meeting of the creditors, at any time before being required by the liquidator to give up the security, file a new proof of debt with a different valuation of the security (called the new value) and deduct the new value from the secured creditor’s debt.
Subregulation 3
However, the liquidator does not need to make payment of the additional 20% of the new value if the liquidator subsequently requires the secured creditor to give up the security for the benefit of the company’s creditors generally.