Vol 23 (2026) - Issue 4

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Forum Shopping for a Friend? Availability of Third Party Releases in the UK, Singapore and the US

Synopsis
Third party releases ('3PRs') have been a feature of restructurings for years in the key international restructuring hubs of New York, London and Singapore.
While once included in court-approved restructuring documentation without argument, recent decisions suggest an emerging focus on whether 3PRs are available or appropriate and, if so, to what extent.
This article reviews the use of 3PRs in court-approved restructurings in New York, England and Singapore. Divergence in practice between New York on the one hand and England and Singapore on the other may incentivise forum shopping by restructuring companies, especially when their affiliates or management perceive a 3PR as key to the restructuring's success.
This may increase prominence of the Chapter 15 regime in the US for recognition of foreign restructurings, potentially permitting a 3PR approved by a foreign court under foreign law to be enforced in the US. However, a US court may hesitate to give effect to a foreign 3PR where it appears that the combination of a foreign restructuring and a Chapter 15 proceeding was chosen deliberately to avoid restrictions on 3PRs in Chapter 11 proceedings.