Guide on Restructuring, Turnaround and Insolvency in Asia Pacific

By Paul Apáthy, Alexander Aitken, Debby Sulaiman and Jamie McLaren (Herbert Smith Freehills)

Herbert Smith Freehills has recently launched the 2023 edition of their Guide to Restructuring, Turnaround and Insolvency in Asia Pacific (“The Guide”).

The Guide provides an up-to-date and comprehensive overview of the legal framework for corporate restructuring, turnaround and insolvency in 18 major jurisdictions across the region. The jurisdictions covered are Australia, Bangladesh, Mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, Myanmar, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, South Korea, Taiwan, Thailand and Vietnam.

The Guide is intended to be user-friendly and covers all the most frequently asked questions relating to restructuring, turnaround and insolvency in the Asia Pacific. Specifically, for each jurisdiction, the Guide includes a summary of (i) each of the key formal restructuring and insolvency procedures; (ii) the methods by which secured creditors can enforce their security; (iii) common issues encountered in the lead up to formal insolvency procedures, such as insolvent trading issues, voidable transactions risk, and lender and director liability; (iv) the priority of distributions in insolvency; (v) the prevalence of restructuring techniques such as credit bidding, pre-packaged sales and debt-for-equity swaps, as well as the ability of creditors to engage in debt trading; (vi) recognition of foreign restructuring and insolvency procedures; and (vii) recent trends and developments.

With the region expected to experience slower growth and tighter financial conditions as a result of supply chain pressures, rising interest rates and inflation, geopolitical tensions, and the continued fall out from COVID-19, the Guide will be an essential tool for corporates, financiers, funds, directors, advisors and other stakeholders needing to navigate corporate financial distress across the region.

The Guide can be found here.