Interpretation of this Part
Open ↗72A. In this Part, unless the context otherwise requires —“chattels leasing agreement”, “hire-purchase agreement” and “retention of title agreement” have the meanings given by section 88(1);
“company” means any corporation liable to be wound up under this Act, but excludes such company or class of companies as the Minister may by order in the Gazette prescribe;
“company (in simplified debt restructuring)” means a company for which the simplified debt restructuring programme has commenced under section 72E(3), and that has not been discharged from the programme;[Act 3 of 2025 wef 29/01/2026]
“designated website” means the Internet website prescribed by regulations made under section 72V for the purpose of publishing notices to creditors and other persons under this Part;
“moratorium period”, in relation to a company that has commenced the simplified debt restructuring programme under section 72E(3), means the period starting on the date of the commencement, and ending on —(a)
the date that is such number of days after the date of entry as may be prescribed by regulations made under section 72V, including any extension of the period under section 72Q; or
(b)
if the company is discharged from the simplified debt restructuring programme before that date, the date of discharge;[Act 3 of 2025 wef 29/01/2026]
[Deleted by Act 3 of 2025 wef 29/01/2026]
[Deleted by Act 3 of 2025 wef 29/01/2026]
“Restructuring Adviser”, in relation to a company (in simplified debt restructuring), means a person appointed under section 72D(1) to be the Restructuring Adviser of the company;[Act 3 of 2025 wef 29/01/2026]
“simplified debt restructuring programme” means the programme established in section 72C.
[Deleted by Act 3 of 2025 wef 29/01/2026]
[39/2020]
Division 2 — Simplified debt restructuring programme
Establishment of simplified debt restructuring programme
Open ↗72C. There is established a programme, known as the simplified debt restructuring programme, for the purpose of providing a simplified process for the restructuring of debts to any eligible company that seeks to enter into a compromise or an arrangement between the company and its creditors or any class of those creditors.[39/2020]
Appointment of qualified persons and Restructuring Advisers
Open ↗72D.—(1) A company may appoint any qualified person to be its Restructuring Adviser to advise the company in matters relating to its entry into the simplified debt restructuring programme.[Act 3 of 2025 wef 29/01/2026]
(2) [Deleted by Act 3 of 2025 wef 29/01/2026]
(3) A qualified person may not be appointed as a Restructuring Adviser of a company unless he or she consents to be so appointed. [39/2020]
[Act 3 of 2025 wef 29/01/2026]
(4) When more than one Restructuring Adviser is appointed for a company, any power given to a Restructuring Adviser under this Part may be exercised by any one or more of them as provided by agreement between the company and him, her or them (as the case may be) at the time of the appointment or appointments.[Act 3 of 2025 wef 29/01/2026]
(5) The Official Receiver is to take cognizance of the conduct of a Restructuring Adviser in the performance of the Restructuring Adviser’s duties under this Part, and if —(a)
the Restructuring Adviser does not faithfully perform his or her duties or duly observe all the requirements imposed on him or her or by any written law or otherwise with respect to the performance of the Restructuring Adviser’s duties under this Part; or[Act 3 of 2025 wef 29/01/2026]
(b)
any complaint is made to the Official Receiver by any creditor or contributory in relation to the conduct of the Restructuring Adviser in the performance of the Restructuring Adviser’s duties under this Part,
the Official Receiver is to inquire into the matter, and take such action on the matter as the Official Receiver thinks expedient.
[39/2020]
[Act 3 of 2025 wef 29/01/2026]
(6) No liability shall lie against any qualified person with respect to anything done or omitted to be done in good faith and with reasonable care in the discharge or purported discharge of his or her functions and duties under subsection (1) or as a Restructuring Adviser under section 72L. [39/2020]
[Act 3 of 2025 wef 29/01/2026]
(7) In this section, “qualified person” means any person —(a)
who —(i)
is a public accountant;
(ii)
is a chartered accountant within the meaning of section 2(1) of the Accounting and Corporate Regulatory Authority Act 2004; or
(iii)
possesses any other qualification or any relevant experience as the Minister may prescribe by regulations made under section 72V; and
(b)
who is a licensed insolvency practitioner.[Act 3 of 2025 wef 29/01/2026]
(8) The following must not be appointed, and must not act, as a Restructuring Adviser of a company:(a)
an undischarged bankrupt;
(b)
the holder of a charge or other security over any property of the company;
(c)
an auditor of the company;
(d)
a director, secretary or employee of the company, or of any company that is the holder of a charge or other security over the property of the company.[Act 3 of 2025 wef 29/01/2026]
Division 3 — Entry into simplified debt restructuring programme
Commencement of simplified debt restructuring programme
Open ↗72E.—(1) A company may, in accordance with this section, enter into the simplified debt restructuring programme.
(2) For a company to enter into the simplified debt restructuring programme, the following conditions must be satisfied:(a)
the company passes a special resolution in general meeting authorising its entry into the simplified debt restructuring programme;
(b)
the Restructuring Adviser of the company assesses that the company meets the requirements under section 72F(1), and lodges with the Registrar of Companies and the Official Receiver using the designated website within 7 days after the special resolution specified in paragraph (a) is passed, copies of the special resolution and the notice of its entry into the programme.
(3) The simplified debt restructuring programme for the company is deemed to commence on the date of lodgment with the Registrar of Companies and the Official Receiver of the notice of its entry into the programme or, if the dates of lodgment are different for both of them, whichever is later.
(4) If a company has, in connection with the company’s entry into the simplified debt restructuring programme, made any statement, or provided any information or document, to the Restructuring Adviser that is false or misleading in a material particular, any officer of the company who —(a)
consented or connived, or conspired with others, to effect the making of the statement or provision of the information or document;
(b)
is in any other way, whether by act or omission, knowingly concerned in, or is party to, the making of the statement or the provision of the information or document; or
(c)
knew or ought reasonably to have known that the statement to be made or being made, or the information or document to be provided or being provided, by the company is false or misleading in a material particular, and failed to take all reasonable steps to prevent or stop the making of the statement or the provision of the information or document,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both.
(5) For the purposes of subsection (4), an officer of a company is a director or secretary of the company or a person employed in an executive capacity by the company.[Act 3 of 2025 wef 29/01/2026]
Requirements for entry into simplified debt restructuring programme
Open ↗72F.—(1) A company may enter into the simplified debt restructuring programme under section 72E only if both of the following requirements are met: (a)
the company meets the eligibility criteria set out in subsection (2); [Act 3 of 2025 wef 29/01/2026]
(b)
there is no circumstance in subsection (3), known to the Restructuring Adviser, that makes the company unsuitable for entry into the simplified debt restructuring programme.[39/2020]
[Act 3 of 2025 wef 29/01/2026]
(2) For the purposes of subsection (1)(a), the eligibility criteria are as follows:(a)
[Deleted by Act 3 of 2025 wef 29/01/2026]
(b)
[Deleted by Act 3 of 2025 wef 29/01/2026]
(c)
[Deleted by Act 3 of 2025 wef 29/01/2026]
(d)
the liabilities of the company (including contingent and prospective liabilities, and any liabilities to any related party of the company) do not exceed $2 million (or any amount that may be prescribed in substitution by the Minister by order in the Gazette);[Act 3 of 2025 wef 29/01/2026]
(da)
within the period of 60 months immediately before the proposed date of lodgment of the notice of its entry into the simplified debt restructuring programme under section 72E, the company has not —(i)
previously entered the programme under this Part, or been accepted into the programme under this Part as in force immediately before the date of commencement of section 7 of the Insolvency, Restructuring and Dissolution (Amendment) Act 2025; and
(ii)
failed to have the debt restructuring proposal approved by its creditors or the compromise or arrangement approved by the court, as the case may be;[Act 3 of 2025 wef 29/01/2026]
(e)
any other criteria as may be prescribed by the Minister by order in the Gazette.[39/2020]
(3) For the purposes of subsection (1)(b), each of the following is a circumstance that makes a company unsuitable for entry into the simplified debt restructuring programme:(a)
the company is being wound up pursuant to —(i)
an order for the winding up of a company under section 216(2)(f) of the Companies Act 1967;
(ii)
an order for winding up made under section 124 (or any previous written law corresponding to that provision); or
(iii)
a resolution passed for the winding up of a company under section 160 (or any previous written law corresponding to that provision); [Act 3 of 2025 wef 29/01/2026]
(b)
the company is in judicial management —(i)
within the meaning of section 88(2); or
(ii)
pursuant to an application made under the repealed section 227B(1) of the Companies Act 1967 as in force before 30 July 2020;[Act 3 of 2025 wef 29/01/2026]
(c)
an application has been made by or in respect of the company under any of the following provisions and the application is pending:(i)
section 210(1), (4) or (10) of the Companies Act 1967;
(ii)
section 64(1) (or any previous written law corresponding to that provision);
(iii)
section 71 (or any previous written law corresponding to that provision);
(iv)
section 91 (or any previous written law corresponding to that provision);
(v)
section 124 (or any previous written law corresponding to that provision);[Act 3 of 2025 wef 29/01/2026]
(d)
an order under section 210(10) of the Companies Act 1967, one or more orders under section 64(1) (or any previous written law corresponding to that provision) or an automatic moratorium mentioned in section 64(8) (or any previous written law corresponding to that provision), is in force in relation to the company;[Act 3 of 2025 wef 29/01/2026]
(e)
a provisional liquidator of the company has been appointed under section 161 (or any previous written law corresponding to that provision);[Act 3 of 2025 wef 29/01/2026]
(f)
an interim judicial manager has been appointed by the Court under section 92 (or any previous written law corresponding to that provision) or by the company under section 94(3), and the term of the appointment of the interim judicial manager has not ended;[Act 3 of 2025 wef 29/01/2026]
(g)
the company has passed a special resolution authorising entry into the simplified winding up programme under section 250D;[Act 3 of 2025 wef 29/01/2026]
(h)
the company (with the assistance of a Restructuring Adviser) is unlikely to be able to formulate a proposed compromise or arrangement with its creditors, or obtain the agreement of two-thirds majority in value of its creditors to the proposed compromise or arrangement, within the moratorium period after the company’s entry into the simplified debt restructuring programme;[Act 3 of 2025 wef 29/01/2026]
(i)
[Deleted by Act 3 of 2025 wef 29/01/2026]
(j)
[Deleted by Act 3 of 2025 wef 29/01/2026]
(k)
[Deleted by Act 3 of 2025 wef 29/01/2026]
(l)
any other circumstances as may be prescribed by order in the Gazette.[39/2020]
[Act 3 of 2025 wef 29/01/2026]
(4) Any order made under subsection (2)(d) or (e) or (3)(l) must be presented to Parliament as soon as possible after publication in the Gazette.[Act 3 of 2025 wef 29/01/2026]
(5) [Deleted by Act 3 of 2025 wef 29/01/2026]
Notice of objection, etc.
Open ↗72G.—(1) Upon the lodgment of the notice of a company’s entry into the simplified debt restructuring programme under section 72E, the Restructuring Adviser of the company must —(a)
send to every creditor of the company; and
(b)
publish on the designated website,
a notice of its entry into the simplified debt restructuring programme.
[Act 3 of 2025 wef 29/01/2026]
(2) [Deleted by Act 3 of 2025 wef 29/01/2026]
(3) The notice of entry under subsection (1) must contain the following information:(a)
the name of the company and its Unique Entity Number (UEN);[Act 3 of 2025 wef 29/01/2026]
(b)
the date of the notice of entry;[Act 3 of 2025 wef 29/01/2026]
(c)
[Deleted by Act 3 of 2025 wef 29/01/2026]
(d)
the form of, and manner of delivering, a notice of objection;
(e)
a note providing the address of the designated website and stating that all subsequent notices relating to the company required to be published by the Restructuring Adviser on the designated website under this Part will be published on the designated website;[Act 3 of 2025 wef 29/01/2026]
(f)
any other information as may be prescribed by regulations made under section 72V. [39/2020]
[Act 3 of 2025 wef 29/01/2026]
(4) Any creditor, member or officer of the company who believes there is reasonable cause why the company should not have entered into the simplified debt restructuring programme by reason of not meeting any of the requirements under section 72F(1), may object by delivering a notice (called in this section a notice of objection) to the Restructuring Adviser, in the form and manner stated in the notice of entry under subsection (1), within 21 days after the date of the notice of entry.[Act 3 of 2025 wef 29/01/2026]
(5) A notice of objection under subsection (4) must contain a statement of the grounds of objection. [39/2020]
(6) At the expiry of 21 days after the date of the notice of entry published under subsection (1), if the Restructuring Adviser has received any notice of objection, the Restructuring Adviser must reconsider whether the company meets the requirements under section 72F(1) and if he or she decides that the company does not meet any of those requirements, the company must be discharged from the simplified debt restructuring programme.[Act 3 of 2025 wef 29/01/2026]
(7) [Deleted by Act 3 of 2025 wef 29/01/2026]
Discharge of company from simplified debt restructuring programme on grounds of unsuitability
Open ↗72J.—(1) A company that has entered into the simplified debt restructuring programme under section 72E must, during the moratorium period, continue to satisfy the requirements under section 72F(1) in order to remain on the programme.
(2) If the Restructuring Adviser of the company finds that —(a)
the company no longer satisfies any of the requirements in section 72F(1); or
(b)
the company has entered into the simplified debt restructuring programme on the basis of information or documents not known to or seen by the Restructuring Adviser, and that the Restructuring Adviser would have decided that the company does not meet the requirements under section 72F(1) at the time of entry had he or she known of or seen the information or document,
the Restructuring Adviser must discharge the company from the simplified debt restructuring programme.
(3) Notice of every discharge under this section must be published by the Restructuring Adviser on the designated website.[Act 3 of 2025 wef 29/01/2026]
Division 4 — Effect of entry into simplified debt restructuring programme
Restraint of proceedings and disposition of property, etc., during moratorium period
Open ↗72K.—(1) During the moratorium period in respect of a company that has entered into the simplified debt restructuring programme under section 72E —(a)
no order may be made, and no resolution may be passed, for the winding up of the company;
(b)
no receiver or manager may be appointed over any property or undertaking of the company;
(c)
no proceedings may be commenced or continued against the company, except with the permission of the Court and subject to any terms as the Court may impose; [Act 25 of 2021 wef 01/04/2022]
[Act 3 of 2025 wef 29/01/2026]
(d)
no enforcement order or other legal process may be issued, continued or executed, and no distress may be levied, against any property of the company, except with the permission of the Court and subject to any terms as the Court may impose;[Act 25 of 2021 wef 01/04/2022]
(e)
no step may be taken to enforce any security over any property of the company, or to repossess any goods under any chattels leasing agreement, hire-purchase agreement or retention of title agreement, except with the permission of the Court and subject to any terms as the Court may impose; and[Act 25 of 2021 wef 01/04/2022]
(f)
despite sections 18 and 18A of the Conveyancing and Law of Property Act 1886, no right of re‑entry or forfeiture under any lease in respect of any premises occupied by the company may be enforced, except with the permission of the Court and subject to any terms as the Court may impose.[39/2020]
[Act 25 of 2021 wef 01/04/2022]
[Act 3 of 2025 wef 29/01/2026]
(2) Subsection (1) does not affect —(a)
the exercise of any legal right under any arrangement (including a set‑off arrangement or a netting arrangement) that may be prescribed by regulations made under section 72V; or
(b)
the commencement or continuation of any proceedings that may be so prescribed.[39/2020]
(3) A company (in simplified debt restructuring) that intentionally or knowingly disposes of the property of the company during the moratorium period in respect of the company, other than in good faith and in the ordinary course of business of the company, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000. [39/2020]
[Act 3 of 2025 wef 29/01/2026]
(4) An officer of a company mentioned in subsection (3) who —(a)
consented or connived, or conspired with others, to effect the disposal of the property of the company;
(b)
is in any other way, whether by act or omission, knowingly concerned in, or party to, the disposal of the property of the company; or
(c)
knew or ought reasonably to have known that the property would be or is being disposed of and failed to take all reasonable steps to prevent or stop the disposal of the property of the company,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 2 years, whether or not the company is convicted of an offence under subsection (3).
[39/2020]
(5) In this section, “officer”, in relation to a company, means a director or secretary of the company or a person employed in an executive capacity by the company.[39/2020]
[Act 3 of 2025 wef 29/01/2026]
Notification of simplified debt restructuring
Open ↗72KA.—(1) During the period in which a company is in the simplified debt restructuring programme —(a)
every invoice, order for goods, business letter, order form or other correspondence (whether in hard copy, electronic or any other form) that is issued by or on behalf of the company, being a document on or in which the name of the company appears; and
(b)
every Internet website of the company on or in which the name of the company appears,
must state, immediately after the name of the company where it first appears in that document or Internet website, that the company is in simplified debt restructuring.
(2) If there is any default in complying with this section, each of the following shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 and also to a default penalty:(a)
the company;
(b)
any officer of the company (within the meaning of section 72K(5)) who knowingly and wilfully authorises or permits the default.[Act 3 of 2025 wef 29/01/2026]
Division 5 — Compromise or arrangement with creditors or class of creditors
General provisions as to Restructuring Advisers
Open ↗72L. The duties of the Restructuring Adviser of a company (in simplified debt restructuring) include the following:(aa)
to send to every creditor of the company (whose name and address are provided by the company to the Restructuring Adviser) any notification that must be sent to the creditors under this Part;[Act 3 of 2025 wef 29/01/2026]
(a)
to assist the company to formulate a proposed compromise or arrangement between the company and its creditors or any class of those creditors;
(b)
if the Restructuring Adviser is of the view that the proposed compromise or arrangement mentioned in paragraph (a) is feasible and merits consideration by the company’s creditors — to assist the company in seeking agreement to the proposed compromise or arrangement from the creditors of the company;[Act 3 of 2025 wef 29/01/2026]
(c)
to send to every creditor of the company (whose name and address are provided by the company to the Restructuring Adviser) copies of all documents that are required for obtaining the approval of the creditors of a compromise or an arrangement;[Act 3 of 2025 wef 29/01/2026]
(d)
to take such steps to supervise the holding of the meeting of the company and its creditors specified in section 72M as may be prescribed by regulations made under section 72V;[Act 3 of 2025 wef 29/01/2026]
(e)
as soon as practicable after the completion by the company of or the discharge of the company from the simplified debt restructuring programme, submit a report to the Official Receiver in such form, and containing such information, as may be prescribed by regulations made under section 72V.[39/2020]
[Act 3 of 2025 wef 29/01/2026]
Compromise or arrangement
Open ↗72M.—(1) A company (in simplified debt restructuring) may, with the consent of its Restructuring Adviser, make a debt restructuring proposal to its creditors that provides for a compromise or an arrangement in satisfaction of the company’s debts.
(2) The Restructuring Adviser must —(a)
summon a meeting of the company and its creditors to consider the debt restructuring proposal at such time, date and place as he or she thinks fit, by giving at least 21 days’ notice of the meeting; and
(b)
seek a decision from the company’s creditors as to whether they approve the debt restructuring proposal.
(3) The notice to summon the meeting mentioned in subsection (2)(a) must contain all of the following:(a)
details of the meeting;
(b)
a list of assets of the company, including those assets that are subject to a security;
(c)
details of the decision to be made or of any resolution on which a decision is sought, including the terms and conditions of the debt restructuring proposal and the compromise or arrangement that is sought;
(d)
a statement of the effects of the debt restructuring proposal on creditors’ rights;
(e)
the amount proposed to be paid to the Restructuring Adviser by way of fees and expenses;
(f)
a comparison of what the creditors would receive in the debt restructuring proposal and in the most likely scenario if the compromise or arrangement pursuant to the debt restructuring proposal does not become binding on the company and its creditors;
(g)
such other details of the company’s affairs as may be prescribed by regulations made under section 72V.
(4) The compromise or arrangement pursuant to the debt restructuring proposal (or any modification to the proposal) is approved by the company’s creditors when two-thirds or more (in value of the debts) of those creditors meant to be bound by the compromise or arrangement, and who were present and voting (either in person or by proxy), vote in favour of a decision approving the debt restructuring proposal, including the compromise or arrangement (or the modification of the proposal).
(5) The notice in subsection (2)(a) must be given to every creditor of the company whose claim and address are provided by the company to the Restructuring Adviser.
(6) The company and its creditors may approve the debt restructuring proposal with or without modifications, including the appointment of another qualified person as Restructuring Adviser, except that a modification must not result in a proposal that is significantly different from the debt restructuring proposal mentioned in subsection (3)(c), and any modification made in contravention of this subsection is void.
(7) For the purposes of this section and subject to subsections (9) and (10), creditors meant to be bound by the compromise or arrangement pursuant to the debt restructuring proposal are —(a)
creditors of unsecured debts of the company; and
(b)
creditors of preferential debts of the company, if applicable.
(8) Unless specifically excluded by this section, all creditors that are meant to be bound by the compromise or arrangement pursuant to the debt restructuring proposal are entitled to vote at the same meeting held for the purpose of seeking a decision, and are bound by the debt restructuring proposal (if approved) in accordance with and to the extent provided by this section.
(9) The compromise or arrangement pursuant to the debt restructuring proposal is binding on a secured creditor —(a)
if the value of the creditor’s security interest is less than the value of the creditor’s admissible debts or claims — only to the extent of the difference between the values; and
(b)
if the value of the creditor’s security interest is equal to or more than the value of the creditor’s admissible debts or claims — only to the extent that the creditor consents to be bound.
(10) The compromise or arrangement pursuant to the debt restructuring proposal does not prevent a secured creditor from realising or otherwise dealing with the creditor’s security interest, unless —(a)
the secured creditor has voted in favour of the debt restructuring proposal; and
(b)
such proposal prevents the secured creditor from realising or otherwise dealing with the security interest.
(11) The following are not entitled to vote at the meeting referred to in subsection (2):(a)
a creditor of the company that is —(i)
a holding company, an ultimate holding company or a subsidiary of the company;
(ii)
a director or shareholder of the company; or
(iii)
a relative or spouse of a director or shareholder of the company;
(b)
a creditor of the company that is a subsidiary of another company of which the company is also a subsidiary.
(12) For the purpose of subsection (11)(a)(iii), a creditor (A) is a relative of a director or shareholder of a company (B) if A is B’s brother, sister, uncle, aunt, nephew, niece, lineal ancestor or lineal descendant, treating —(a)
any relationship of the half-blood as a relationship of the whole blood and the stepchild or adopted child of any person as that person’s child; and
(b)
an illegitimate child as the legitimate child of the child’s mother and reputed father.
(13) A reference in subsection (11) to a spouse includes a former spouse and a reputed husband or wife.
(14) The Restructuring Adviser must, within 7 days after the meeting of the creditors mentioned in subsection (2), publish the outcome of the meeting on the designated website.
(15) Where the debt restructuring proposal is approved by the company’s creditors, the Restructuring Adviser must lodge a copy of the approved debt restructuring proposal with the Official Receiver and the Registrar of Companies, and notify every creditor of the company whose claim and address are provided by the company to the Restructuring Adviser and who is to be bound by the debt restructuring proposal, of the lodgment.
(16) When the debt restructuring proposal is approved by the company’s creditors, the compromise or arrangement as provided by the proposal —(a)
is effective as of the date of lodgment of the copy of the proposal with the Official Receiver and the Registrar of Companies; and
(b)
binds all the creditors of the company who are to be bound by the compromise or arrangement in accordance with and to the extent provided by this section.[Act 3 of 2025 wef 29/01/2026]
Application to Court
Open ↗72N.—(1) Subject to this section, an application to the Court for an order under subsection (5) may be made by any of the persons specified in subsection (2), on one or more of the grounds specified in subsection (3).
(2) For the purpose of this section, the person who can make the application is a creditor who is bound by the compromise or arrangement pursuant to the debt restructuring proposal approved under section 72M(6) or the Restructuring Adviser.
(3) For the purposes of subsection (1), the grounds of application are that —(a)
there is a material procedural irregularity at or in relation to the meeting of the company and its creditors pursuant to section 72M, or in relation to the approval of the creditors at the meeting, including a situation where —(i)
any of the contents of the notice to summon the meeting specified in section 72M(3) is materially false or misleading;
(ii)
there is a material omission in such contents; or
(iii)
there is otherwise a defect in the manner in which the approval has been obtained from the creditors;
(b)
a substitution or splitting of classification of creditors is necessary in the circumstances for the compromise or arrangement to be fair and equitable to all the creditors who are meant to be bound by the compromise or arrangement; or
(c)
the proposed compromise or arrangement approved by the meeting of the company and its creditors under section 72M is contrary to the interests of the creditors of the company as a whole.
(4) For the purpose of subsection (3), a failure by the company to send the notice under section 72M(2)(a) to a creditor who is bound by the compromise or arrangement because the company does not know and has no reasonable grounds to know of the creditor’s name or address, is not regarded as a material procedural irregularity unless, either —(a)
the debt restructuring proposal would not have been approved by the requisite majority had the creditor been present at the meeting and objected to the debt restructuring proposal; or
(b)
the creditor receives an amount under the debt restructuring proposal that is lower than what the creditor is estimated to receive in the most likely scenario if the compromise or arrangement is not binding on the company and its creditors.
(5) If the Court is satisfied that one or more of the grounds in subsection (3) is satisfied, the Court may make any order it thinks fit, including —(a)
revoking or suspending the compromise or arrangement; or
(b)
giving any directions to the Restructuring Adviser, including a direction to put to the creditors for consideration any modifications to the compromise or arrangement, except that no modification may be made to any material commercial terms of the debt restructuring proposal.[Act 3 of 2025 wef 29/01/2026]
Orders pending appeal
Open ↗72O. Where an appeal is made against an order of the Court made on an application by a creditor or a Restructuring Adviser under section 72N or the dismissal of an application under that provision, the Court may, on the application of the company, make one or more of the following orders, each of which is in force for such period pending the appeal as the Court thinks fit:(a)
an order restraining the passing of a resolution for the winding up of the company;
(b)
an order restraining the appointment of a receiver or manager over any property or undertaking of the company;
(c)
an order restraining the commencement or continuation of any proceedings (other than proceedings arising from the appeal) against the company, except with the permission of the Court and subject to any terms as the Court imposes;[Act 25 of 2021 wef 01/04/2022]
(d)
an order restraining the issuance, continuation or execution of any enforcement order or other legal process, or the levying of any distress, against any property of the company, except with the permission of the Court and subject to any terms as the Court imposes;[Act 25 of 2021 wef 01/04/2022]
(e)
an order restraining the taking of any step to enforce any security over any property of the company, or to repossess any goods held by the company under any chattels leasing agreement, hire‑purchase agreement or retention of title agreement, except with the permission of the Court and subject to any terms as the Court imposes;[Act 25 of 2021 wef 01/04/2022]
(f)
an order restraining the enforcement of any right of re‑entry or forfeiture under any lease in respect of any premises occupied by the company (including any enforcement pursuant to section 18 or 18A of the Conveyancing and Law of Property Act 1886), except with the permission of the Court and subject to any terms as the Court imposes.[39/2020]
[Act 25 of 2021 wef 01/04/2022]
[Act 3 of 2025 wef 29/01/2026]
Implementation of compromise or arrangement
Open ↗72P.—(1) This section applies after a debt restructuring proposal is approved by the creditors under section 72M, as modified by the Court under section 72N, if applicable.
(2) The Court may, on an application by any of the company’s creditors who is dissatisfied with any act, omission or decision of the Restructuring Adviser, that results in a breach of any term of the debt restructuring proposal, confirm, reverse or modify the act, omission or decision, or give such directions or make such other order as the Court thinks fit to rectify the act, omission or decision.
(3) The Court may on an application under subsection (2) clarify any term of the debt restructuring proposal.
(4) No order or clarification made, and no direction given, by the Court under subsection (2) or (3) may alter, or affect any person’s rights under, the terms of the compromise or arrangement provided under the debt restructuring proposal.[Act 3 of 2025 wef 29/01/2026]
Division 6 — Discharge from simplified debt restructuring programme
Discharge from simplified debt restructuring programme
Open ↗72Q.—(1) Subject to this section, a company (in simplified debt restructuring) is discharged from the simplified debt restructuring programme at the expiry of its moratorium period.[Act 3 of 2025 wef 29/01/2026]
(2) A company (in simplified debt restructuring) or the Restructuring Adviser may apply to the Official Receiver for an extension of the moratorium period, in the prescribed form and manner, to defer its discharge from the simplified debt restructuring programme, but only if the application is accompanied by evidence of consent of at least two-thirds in total value of the creditors.[Act 3 of 2025 wef 29/01/2026]
(3) On an application under subsection (2), the Official Receiver may —(a)
extend the moratorium period —(i)
for such number of days as may be prescribed by regulations made under section 72V after the expiry of the moratorium period;[Act 3 of 2025 wef 29/01/2026]
(ii)
only once; and
(iii)
only before the expiry of the moratorium period; or[Act 3 of 2025 wef 29/01/2026]
(b)
decline to extend the moratorium period.[39/2020]
[Act 3 of 2025 wef 29/01/2026]
(3A) The Official Receiver’s decision under subsection (3) is final.[Act 3 of 2025 wef 29/01/2026]
(4) Where an extension is granted by the Official Receiver under subsection (3), the company (in simplified debt restructuring) is discharged from the simplified debt restructuring programme at the expiry of the moratorium period and the period of the extension.[39/2020]
[Act 3 of 2025 wef 29/01/2026]
(5) Where the compromise or arrangement provided by any debt restructuring proposal becomes effective under section 72M(16) before the expiry of the moratorium period (including any period of extension), the company is discharged from the simplified debt restructuring programme on the day the compromise or arrangement becomes effective.[Act 3 of 2025 wef 29/01/2026]
(6) [Deleted by Act 3 of 2025 wef 29/01/2026]
(7) [Deleted by Act 3 of 2025 wef 29/01/2026]
(8) [Deleted by Act 3 of 2025 wef 29/01/2026]
(9) Notice of every discharge under this section must be published by the Restructuring Adviser on the designated website.[39/2020]
[Act 3 of 2025 wef 29/01/2026]
Application of sections 124 and 125
Open ↗72QA.—(1) This section applies where a company enters into the simplified debt restructuring programme and is subsequently discharged pursuant to section 72Q without the approval of the creditors for a compromise or an arrangement in satisfaction of the company’s debts.(2) Where this section applies —(a)
section 124 applies as if the following paragraph appears after paragraph (i) of subsection (1):“(j)
its Restructuring Adviser.”;
(b)
section 125 applies as if the following paragraph appears after paragraph (n) of subsection (1):“(o)
the company is discharged from the simplified debt restructuring programme pursuant to section 72Q.”; and
(c)
section 125 applies as if the following subsection appears after subsection (4):“(4A) For the purpose of subsection (1)(o), where the Court determines that the company satisfies the requirements of section 250F, the Court may, in lieu of ordering the winding up of the company under section 124, order the company to enter into the simplified winding up programme under Part 10A, whereupon the provisions of Part 10A apply, with such adaptations as are necessary, as if the authorisation of the company has been obtained in general meeting.”.
[Act 3 of 2025 wef 29/01/2026]
—(1) This section applies where a company enters into the simplified debt restructuring programme and is subsequently discharged pursuant to section 72Q without the approval of the creditors for a compromise or an arrangement in satisfaction of the company’s debts.
(2) Where this section applies —(a)
section 124 applies as if the following paragraph appears after paragraph (i) of subsection (1):“(j)
its Restructuring Adviser.”;
(b)
section 125 applies as if the following paragraph appears after paragraph (n) of subsection (1):“(o)
the company is discharged from the simplified debt restructuring programme pursuant to section 72Q.”; and
(c)
section 125 applies as if the following subsection appears after subsection (4):“(4A) For the purpose of subsection (1)(o), where the Court determines that the company satisfies the requirements of section 250F, the Court may, in lieu of ordering the winding up of the company under section 124, order the company to enter into the simplified winding up programme under Part 10A, whereupon the provisions of Part 10A apply, with such adaptations as are necessary, as if the authorisation of the company has been obtained in general meeting.”.
[Act 3 of 2025 wef 29/01/2026]
“(4A) For the purpose of subsection (1)(o), where the Court determines that the company satisfies the requirements of section 250F, the Court may, in lieu of ordering the winding up of the company under section 124, order the company to enter into the simplified winding up programme under Part 10A, whereupon the provisions of Part 10A apply, with such adaptations as are necessary, as if the authorisation of the company has been obtained in general meeting.”.
Division 7 — Miscellaneous
Regulations for this Part
Open ↗72V.—(1) The Minister may make regulations for the purposes of carrying into effect the objects of this Part.[39/2020]
(2) Without limiting subsection (1), the Minister may make regulations with respect to —(a)
the qualifications, relevant experience, requirements, functions and duties applicable to a Restructuring Adviser;[Act 3 of 2025 wef 29/01/2026]
(b)
the Internet website to be prescribed as the designated website;
(c)
the procedure and the information and documents to be submitted to a Restructuring Adviser, in connection with the entry into the simplified debt restructuring programme and remaining on the programme; [Act 3 of 2025 wef 29/01/2026]
(d)
the information and documents to be submitted to a Restructuring Adviser relating to the company’s property, debts and other financial affairs;[Act 3 of 2025 wef 29/01/2026]
(e)
[Deleted by Act 3 of 2025 wef 29/01/2026]
(f)
all matters or things which by this Part are required or permitted to be prescribed otherwise than by Rules or which are necessary or expedient to be prescribed for giving effect to this Part; [Act 3 of 2025 wef 29/01/2026]
(g)
the moratorium period, and the period of extension under section 72Q(3)(a); and[Act 3 of 2025 wef 29/01/2026]
(h)
the form of, and the information to be contained in, reports that must be submitted by a Restructuring Adviser to the Official Receiver after the completion of or discharge of a company from the simplified debt restructuring programme.[39/2020]
[Act 3 of 2025 wef 29/01/2026]
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
