With Covid-19 shaking global markets, our third annual review of Asia Pacific restructuring charts a fast-moving sector.
Against a backdrop of the Covid-19 pandemic and the resulting economic downturn, we are seeing companies and lenders respond to a new and challenging business environment. The challenges associated with this new environment are further exacerbated as the influencing factors change in nature and intensity.
While Governments in many jurisdictions have attempted to give company directors, businesses and consumers some breathing space during the worst of the pandemic with the implementation of relief packages and legislative changes, a number of these measures are to be wound back or end entirely. The removal of these types of support will add further pressures to many businesses and their stakeholders including lenders.
With this as background we believe this year’s guide is especially applicable to corporates, financiers, creditors, funds, and directors exposed to financial distress for the following reasons:
- Temporary changes to insolvency and restructuring laws: The challenges associated with successfully navigating restructuring and insolvency regimes are further compounded by Covid-19 related temporary or permanent changes to legislation concerning insolvency frameworks. In this year’s guide, we have included information on temporary or permanent changes to insolvency and restructuring law enacted in each jurisdiction in response to Covid-19.
- Continually evolving insolvency and restructuring laws: Statutory regimes in many of the jurisdictions covered in the guide have and continue to reform their respective insolvency and restructuring laws. Lenders and corporates need to be knowledgeable and up-to-date on the regimes in the markets they are exposed to.
- Expected increase in activity: The number of restructurings and insolvencies is expected to increase across the region as economies slow, once viable businesses cease to trade, customer behaviour changes and Government support packages are withdrawn or diminished.
The guide provides an overview of the legal framework for corporate restructuring, turnaround and insolvency in 18 major jurisdictions across Asia Pacific. The countries covered are Australia, Bangladesh, China, Hong Kong, India, Indonesia, Japan, Malaysia, Myanmar, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, South Korea, Taiwan, Thailand and Vietnam.
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The contents of this publication are for reference purposes only and may not be current as at the date of accessing this publication. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.
© Herbert Smith Freehills 2024