Rescue Financing in Singapore: How a Distressed Company Can Obtain Super Priority for New Money Under the IRDA

Short answer: Rescue financing in Singapore is new money a struggling company needs to survive or to avoid a worse outcome in liquidation. Under sections 67 and 101 of the Insolvency, Restructuring and Dissolution Act 2018, the High Court can give that lender priority over other creditors, or security, if the company could not borrow otherwise.

A company that is trying to restructure its debts still has to pay wages, suppliers and rent, and few lenders will advance fresh money to a business that is already in difficulty. Rescue financing in Singapore is the statutory tool that answers this problem: the court can improve the ranking of a new lender so that the loan becomes bankable. This guide explains what the orders are, who can apply and when, the steps, what the company secretary prepares and what your law firm files.

Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.

What is rescue financing in Singapore, and what is super priority?

Rescue financing is new funding the company obtains to keep going or to improve the result for creditors. Super priority is the ranking the court can give the resulting debt if the company is later wound up.

The IRDA defines “rescue financing” as financing that is necessary for the survival of the company, or of the whole or part of its undertaking, as a going concern, or necessary to achieve a more advantageous realisation of the company’s assets than on a winding up. In judicial management the definition also covers financing needed for the court to approve a scheme under section 210(4) of the Companies Act 1967 or section 71(5) of the IRDA. A “super priority debt” is a rescue financing debt that, by court order, ranks ahead of all preferential debts and all other unsecured debts if the company is wound up.

The idea is the same as debtor-in-possession financing in other countries: a lender will advance money to a distressed company only if it will be repaid first. The court’s order supplies that assurance.

What is the legal basis for rescue financing orders in Singapore?

The legal basis is section 67 of the IRDA for companies in a scheme or moratorium process and section 101 for companies in judicial management. Both sections give the court four types of order.

The sections are the same in structure. The differences are who applies (the company under section 67, the judicial manager under section 101) and that section 101(3) expressly says any creditor may oppose the application.

Who can apply for rescue financing, and when?

Only a company that is already inside a statutory restructuring process can apply. A company that simply fears insolvency cannot ask the court for these orders.

1. Under section 67, the company must already have applied under section 210(1) of the Companies Act 1967 (for the court to summon a creditors’ meeting on a proposed scheme) or under section 64(1) of the IRDA (for a moratorium). The application under section 67 is made by the company.
2. Under section 101, the company must be in judicial management, and the application is made by the judicial manager.

The moratorium route has its own conditions. Under section 64(2), the company may apply only if no winding-up order has been made and no winding-up resolution passed, and it must make, or undertake to make as soon as practicable, a scheme application. Our guides on how a scheme of arrangement works, judicial management and the moratorium explain the gateway processes. For a company-side view of the moratorium application, see applying for an interim moratorium under section 64.

How does a company apply for rescue financing? Step by step

The company, or its judicial manager, applies to the High Court with its law firm, and notifies creditors. The statute fixes the notice and lodgement steps; the rest is court practice that your lawyer will manage.

1. Confirm that the company is within section 67 or section 101, for example a pending scheme application, a granted moratorium or a judicial management order.
2. Identify the proposed lender and the terms: amount, interest, repayment, and the priority or security the lender requires.
3. The directors (or the judicial manager) decide to seek the order. For a company, this is normally a board resolution authorising the application and the financing.
4. The law firm files the application with supporting evidence showing that the financing meets the “rescue financing” definition and that the company could not obtain it without the priority or security sought.
5. Send notice of the application to each creditor. Section 67(2) requires the company to do so unless the court orders otherwise; section 101(2) imposes the same duty on the judicial manager.
6. Attend the hearing. Creditors, especially existing secured creditors, may appear and argue. Section 101(3) expressly allows any creditor to oppose in judicial management.
7. If the court makes an order, lodge a copy with ACRA within 14 days.

What documents are needed for a rescue financing application?

The statute does not list a document pack for a section 67 or section 101 application, so the contents below are practical suggestions that your law firm will settle, not a statutory checklist.

How long does it take and what does it cost?

The IRDA sets no timeline for the hearing and no fee for the application, and we have not found a reliable published cost range, so any figure would be a guess. The only statutory time limit is the 14 days to lodge the order with ACRA.

What protects an existing secured creditor and a good-faith lender?

The statute protects both. An existing secured creditor is entitled to adequate protection before the court can rank new security equally with or ahead of its own. A lender that advances money in good faith is protected even if the order is later reversed on appeal.

“Adequate protection” under section 67(6) (and section 101(7)) means one of three things: the court orders the company to make cash payments sufficient to compensate for any fall in the value of the existing security; the court orders additional or replacement security of sufficient value; or the court grants other relief, short of compensation, that gives the holder the “indubitable equivalent” of its existing security.

If an order under paragraph (c) or (d) is reversed or modified on appeal, the debt, the security and its priority remain valid where the lender acted in good faith, whether or not it knew of the appeal, unless the order was stayed pending appeal before the financing was provided (section 67(5); section 101(6)). Sections 205, 224, 225 and 228 of the IRDA do not affect any priority, security or payment made under and in accordance with the order (section 67(7); section 101(8)).

Where does super priority rank if the company is wound up?

Super priority debts rank first. If there are several, they rank equally with each other and abate in equal proportions if there is not enough to pay them in full.

Under section 67(4), super priority debts form one class and are paid ahead of all preferential debts in section 203(1)(a) to (i) and all other unsecured debts. If the property available for them is not enough, they also rank ahead of the holders of debentures secured by a floating charge (as created) and are paid out of the property subject to that floating charge. Our article on who gets paid first in a winding up sets out the ordinary order of payment that super priority overrides.

What does the company secretary prepare and what does the solicitor file?

The solicitor files and argues the application. The company secretary or corporate service provider handles the corporate paperwork around it.

If you need legal advice on whether to apply, speak to a lawyer early, before you approach a lender.

What happens after the court makes an order?

The company (or the judicial manager) must lodge a copy of the order with the Registrar of Companies within 14 days after the date of the order. The lender can then draw down on the agreed terms, relying on the order for its ranking.

Keep the order, the financing agreement and any security documents together in the minute book. If security is granted over company property, ask your law firm whether a charge filing is also needed with ACRA and any other registry. The company remains subject to its restructuring obligations: for example, a moratorium order under section 64 is for the period the court thinks fit, and a judicial manager must act in accordance with the approved proposals. See also extending moratorium protection to a related company.

What are the common mistakes?

The most common mistakes are applying outside the statutory gateway, overreaching on priority and failing to give notice.

• Applying before the company has made a section 210(1) or section 64(1) application, or before it is in judicial management.
• Asking for super priority or higher-ranking security without evidence that no other lender would fund on lesser terms.
• Ignoring the existing secured creditor and offering no adequate protection for orders under paragraph (d).
• Not sending notice of the application to each creditor, unless the court has ordered otherwise.
• Missing the 14-day deadline to lodge the order with ACRA.
• Treating the board resolution as a formality; the lender will expect certified, current corporate records.

For a faster route that can also bring court-supervised protection, see our guide to pre-packaged schemes of arrangement.

Frequently asked questions

Can any distressed company apply for rescue financing orders?

No. The company must first be in a statutory process: a scheme application under section 210(1) of the Companies Act 1967, a moratorium application under section 64(1) of the IRDA, or judicial management. The orders are not available to a company that has not started any of these.

Does super priority apply while the company is still trading?

The orders take effect as a ranking if the company is later wound up. While the company continues, the new lender is paid under the financing terms. The priority matters when the restructuring fails and the company goes into liquidation.

Can existing secured creditors be overridden?

Only for an order under paragraph (d), and only if the company could not otherwise obtain the financing and the existing creditor has adequate protection under section 67(6) or section 101(7). The court can also grant subordinate security under paragraph (c) without that test.

Can creditors object?

Yes. The company or judicial manager must send each creditor a notice of the application, and section 101(3) expressly allows any creditor to oppose in judicial management. Your solicitor will advise how objections are heard in a section 67 application.

Does the lender need to lodge anything with ACRA?

The statute puts the 14-day lodgement duty on the company (section 67(8)) or the judicial manager (section 101(9)), not the lender. Whether a separate charge registration is needed depends on the security granted, so check with your law firm.

Last reviewed: 5 November 2026. The Editorial Team, Raffles Corporate Services.