HOW THIS LAWYER IS PREPARING FOR THE AFTER-EFFECTS OF COVID-19
Here’s how the corporate restructuring and insolvency community can prepare for a busy year ahead, as told by Oon & Bazul partner Ms Mei Yen Tan.
In her two decades of practice, Ms Mei Yen Tan has seen many crises that have caused companies to fold, from the SARS outbreak to the global financial crisis of the late 2000s. But nothing has quite prepared her for the economic picture she’s seeing at work today amid the Covid-19 pandemic.
“We have been busy in the last three months,” she admits. And with the worsening of the Covid-19 pandemic, she expects things to only get busier. “We’re expecting a 40 per cent rise in our insolvency and restructuring instructions,” she says, adding that this will likely include sectors beyond hospitality and retail.
While the Singapore Government has pumped record sums into the economy to help businesses stay afloat, Ms Tan cautions that this will not shield all businesses from the impact of Covid-19. “Don’t get me wrong, these packages will definitely alleviate the burn rate for some companies,” she explains. “But I think we should expect that many businesses that do not have enough resources to ride out this storm or were already in a precarious position will fail. At best, they may be able to restructure their debts in order to survive.”
In this regard, both local and foreign companies can avail themselves of the restructuring tools and processes available under Singapore’s insolvency and restructuring laws. “It is hoped that these laws which Singapore has put in place in the last few years will assist not just local businesses but also those in the region and worldwide to get back on their feet again.”
A HARD LOOK AT ASIA
The corporate restructuring and insolvency community — which includes corporate lawyers, in-house counsel at banks, accounting professionals and many others — must prepare for this looming reality, she urges. And these preparations should include a study of various Asian insolvency laws. “Multi-national clients will require cohesive strategies across all of the countries in which they operate.”
Ms Tan knows this from experience, having witnessed how the 2008 collapse of the Lehman Brothers resulted in more than 75 proceedings across various jurisdictions, among them the United States, Australia, the United Kingdom, Switzerland and Singapore. This cross-border quality extends to restructuring exercises as well. “With increased globaliSation and international trade, a successful restructuring will require coordination by professionals in various jurisdictions, and professionals will have to be aware of the developments in other countries.”
For those serving clients with operations in Japan, a better understanding of developments begins with an upcoming webinar organised by the Asian Business Law Institute (ABLI) and INSOL International. Titled Cross-border Insolvency in Japan — What’s in it for Singapore and Japan, the session is CPD-accredited and will be moderated by Ms Tan. Sharing developments in the Land of the Rising Sun is Mr Zentaro Nihei, a partner in the financial insolvency and restructuring group of Anderson Mōri & Tomotsune, one of the country’s largest firms.
The corporate restructuring and insolvency community must seek out and take advantage of such learning opportunities that focus on cross-border issues, stresses Ms Tan. “It would be impractical to stick to the traditional parochial approach of insolvency laws and focus solely on the insolvency processes of just one jurisdiction,” she adds.
The views and opinions expressed in these articles are those of the individual author/interviewee and do not represent the views of SAL Group, Oon & Bazul, Anderson Mōri & Tomotsune or other parties.
