The Ministry of Law (MinLaw) has introduced a new Re-Align Framework targeted at small and micro enterprises which have been significantly impacted by COVID-19, and need to review their business models and contractual obligations to align with a new COVID-19 normal.
Broadly, the framework will provide parties with a basis to renegotiate certain types of contracts to come to a mutual agreement. If parties are unable to agree, the contract may be terminated. Businesses will remain liable for outstanding debts and obligations, but will not need to pay early termination penalties.
The framework will be available from 15 January 2021, for a period of 6 weeks (until and including 26 February 2021).
For more information, please refer to the below infographics, and the media release, FAQs, further information can be found can be found on MinLaw’s website www.go.gov.sg/re-align.
MinLaw is also organising a Zoom Webinar on 17 Dec, 10.30am to share more about how eligible businesses may benefit from the Re-Align Framework. It includes a briefing on the Simplified Insolvency Programme which provides simpler, faster and lower-cost proceedings for debt restructuring and winding up. Kindly refer to the EDM below for details.