Section 210 of the Companies Act 1967 provides a flexible tool for companies seeking to restructure their debts in Singapore by way of a scheme of arrangement. The provision has seen much use by companies in distress over the years, but the case of Defi Payments Pte Ltd (HC/OA 378/2023) is the first time a cryptocurrency company successfully restructured its debts through a scheme process in Singapore. This Update highlights the key aspects of the scheme and the unique challenges faced in the restructuring of a cryptocurrency company.
The applicant company was represented by Rajah & Tann Singapore LLP’s Sheila Ng, Deputy Head of Restructuring & Insolvency, together with Benedict Tedjopranoto and Naomi Lim. Hoon Chi Tern, Cynthia Wu and Melvin Chua from Rajah & Tann Singapore LLP’s transactional team also advised the applicant company in the restructuring process.
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