Legal Update: Impact of the Insolvency, Restructuring and Dissolution Act 2018 on Contractual Clauses

The Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018) (“IRDA”) which aims to consolidate Singapore’s corporate and personal insolvency and restructuring laws, came into force on 30 July 2020.

Of particular interest to commercial parties is the introduction of the restrictions on ipso facto clauses, which are often contained in commercial agreements to allow a party to unilaterally terminate the agreement or exercise certain remedies usually if the counterparty becomes insolvent or commences insolvency proceedings. Previously, there were no restrictions on the exercise of ipso facto clause under Singapore law.

In this legal update, we examine the scope and impact of the restrictions placed on ipso facto clauses under the IRDA and discuss how commercial parties may address the insolvency risks of counterparties going forward.

Please click on the attachment for more details.

For further information contact:

Corporate and Financial Services

Claudia Teo
Partner & Head, Corporate and Financial Services
ClaudiaTeo@harryelias.com
+65 6361 9845

Huang Zhihao
Of Counsel
ZhihaoHuang@harryelias.com
+65 6361 9869

Yu Yitian
Senior Associate
YitianYu@harryelias.com
+65 6361 9305

Restructuring and Insolvency

Justin Chia
Partner & Head, Restructuring and Insolvency
Justin@harryelias.com
+65 6361 9880

Charles Ho
Senior Associate
CharlesHo@harryelias.com
+65 6361 9887

Supporting team members

Howard Goh
Trainee, Corporate and Financial Services
HowardGoh@harryelias.com

Kushal Shah
Trainee, Restructuring and Insolvency
KushalShah@harryelias.com