Guide on Conducting an Out-of-court Workout in Asia

Asian Business Law Institute and International Insolvency Institute
March 2023
80 pages


One way of dealing with insolvency is a private agreement between creditors — often just banks and bondholders — and the debtor to effect a restructuring.

Such a restructuring might entail, for example, a rescheduling of the debts of the debtor, the conversion of such debts into shares, a disposal of the debtor’s assets and a trimming of the debtor’s business. Reaching a private agreement is by far the most common solution to dealing with insolvency and does not involve the courts. This is referred to in industry jargon as an “out-of-court workout”, a “consensual workout”, an “informal workout” or simply a “workout”.

This guide sets out a model of best practices, in the form of both principles and practice tips, for workouts of corporate debtors in Asia. Although focused on workouts that are entirely consensual and out of court, this guide inevitably makes some reference to the court process since such process is the next step if consensus cannot be reached in a workout. 

This guide has lineage and pedigree with earlier iterations of workout philosophy in other jurisdictions, but considers the diverse cultures, heterogeneous economic development, and different legal systems in Asia by being respectfully restrained.

Book Details

Pages: 410 pages
Editor: Clarisse GIROT
Publisher: Asian Business Law Institute (May 2018)
Language: English
ISBN: 978-981-11-7311-0
Dimensions: 240mm x 152mm
Weight: 0.662 kg

Dr Clarisse GIROT is a Senior Research Fellow at the Asian Business Law Institute. Dr Girot was previously Counsel to the President of the French data privacy regulator, Commission nationale de l’informatique et des libertés (CNIL), and prior to that Dr Girot was head of CNIL’s department for European and International Affairs.

How to download

Nine Principles

Eleven Practice Tips

Table of contents