In many decisions involving US chapter 15 cases, the bankruptcy court’s principal focus will be on what is the debtor’s center of main interests (COMI). An ancillary issue is whether it is appropriate to create COMI to obtain the benefit of a more favorable jurisdiction to restructure a company’s debt (otherwise known as “COMI shifting”). That was one of the issues Bankruptcy Judge Martin Glenn for the US Bankruptcy Court for the Southern District of New York addressed when he granted recognition of the foreign debtors’ proceedings in In re Ocean Rig UDW, Inc.
As we previously reported, the amendments made to the Singapore Companies Act (Companies Act) are part of Singapore’s efforts to become a hub for the restructuring of troubled companies in Asia. This is the first in a series of articles that will explore in more detail some of the key changes that Singapore made to its restructuring regime, which now blends aspects of a UK scheme of arrangement with US chapter 11 concepts.