A well-functioning insolvency system can serve as a valuable tool to foster entrepreneurship, innovation, access to finance, and economic growth. Yet, many countries in Asia and the Pacific still have inefficient insolvency frameworks. The lack of a functioning legal, market and institutional environment to deal with financial distress may hamper the competitiveness of these economies. Additionally, a weak insolvency framework may increase the level of non-performing loans in the banking sector. Such environments may end up jeopardising the stability of the financial system and even lead to sovereign debt issues. To address those problems while facilitating economic recovery in the post-pandemic world, this event will seek to analyse how countries in Asia and the Pacific can strengthen their insolvency and restructuring frameworks. To the end, the event will discuss modern trends and developments in corporate restructuring and insolvency and how an insolvency system should be designed or improved taking into account the legal, market and institutional features existing in a particular jurisdiction.
Topics to be discussed in the event will include: (i) strategies to effectively promote workouts; (ii) design of hybrid procedures and formal insolvency proceedings; (iii) adoption of simplified insolvency frameworks for micro and small enterprises; (iv) implementation of rescue financing provisions; (iii) directors’ duties and liability in the zone of insolvency; (v) governance models of insolvency and restructuring proceedings; (vi) regulatory framework of insolvency practitioners; (vii) treatment of contracts in insolvency and restructuring proceedings; (vii) ranking of claims in insolvency proceedings; (viii) treatment of corporate groups in insolvency; (ix) personal insolvency; and (x) cross-border insolvency. Additionally, all the panels will be encouraged to discuss market and institutional challenges and reforms that can make an insolvency regime more effective.