The two companies in this case were KS Energy Ltd (KSE), a public-listed company on the Main Board of the Singapore Exchange, and KS Drilling Pte Ltd (KSD) (being a KSE subsidiary). OCBC held about 61.14% of KSE’s total liabilities making them a major, or more aptly, the majority creditor. Due to the similarity in language, this decision would also have significance for a judicial manager who seeks to have continued supply to the company. SINGAPORE: Troubled Singapore oilfield services firm Swiber Holdings said on Monday its interim judicial managers saw “reasonable” prospects of saving the company. The original Orders were obtained ex parte. So, the Court will consider the nature and imminence of the risks facing the company’s business and assets. Hi Lee Shih, Kindly provide the link to your comment on the decision of case 3 – Perwaja Steel. Between 2016 to 2019, KSE suffered financial difficulties. Two Singapore-based employees of accounting firm EY were appointed interim judicial managers of Ocean Tankers yesterday. The Explanatory Statement of the Bill stated that the introduction of these four pre-conditions was to make sure that “creditors are aware of an application” and that “specific conditions” needed to be met “to avoid any abuse.”. A common feature of corporate rescue mechanisms is that there is to be a moratorium to stay legal proceedings against the distressed company. This decision is useful in setting out the principles for the appointment of interim judicial managers. Two Singapore-based employees of accounting firm EY were appointed interim judicial managers of Ocean Tankers yesterday. Fourth, the Court also drew a comparison and analogy with the appointment of provisional liquidators (now known as interim liquidators under Malaysia law). It would be common practice to nonetheless disclose to the second Court all the proceedings that had already taken place and any ongoing legal actions. 2 positions at gatewayrecruitinginc and bayer including Senior Manager, Trade Operations, Clinical Study Manager related to interim project manager. In Malaysia, it was thought that the maximum duration of a judicial management order is only six months plus one extension of six months. This destroys value. It is sometimes common practice for a company to first file an Originating Summons in the first court to obtain leave to convene the scheme creditors’ meeting. Apr 28, 2020, 5:00 am SGT; New: Gift … Photo: Lloyd's Register Asia. Do NOT follow this link or you will be banned from the site. In this case, the receiver and manager appointed over Perwaja Steel sold the charged lands. Singapore-based commodity trader Agritrade International Pte Ltd, which has $1.55 billion due to creditors, has been placed under interim judicial … HAMMERED by a US$4 billion debt pile and an ongoing probe by Singapore's white-collar crime buster, the city-state's largest oil trader Hin Leong Trading (HLT) was granted interim judicial management on Monday by the High Court. It is interesting to see financial institutions in Singapore applying for or supporting placing the borrower company into judicial management. An article reviewing Judicial Management in Malaysia. Ltd., an affiliate of Hin Leong, will reportedly proceed with its application for court protection, according to Bloomberg. For such an insolvent company facing a judicial management application, the Court made the following comment: “While miracles can sometimes happen even in commercial settings, some evidence would typically need to be provided of a “white knight” on the verge of coming to the rescue. By way of a Court of Appeal Order dated 16 April 2019, the High Court’s decision was reversed. I am organising the case study session where it will feature a hypothetical judicial management case study. These creditors had opposed the scheme of arrangement. Tue, Nov 17, 2020 - 5:50 AM. Published: 23 April, 2020. Arising from this second point, it would be prudent to ensure that there is only one set of the same Court proceedings. So would the Employment Act prevail or the CA 2016 provisions prevail? An application for the full-fledged JM is scheduled to be heard on 21 May 2020. The interim judicial manager is appointed by filing either a shareholder’s resolution or board resolution for the appointment, and lodging statutory declarations with the Official Receiver and ACRA stating the interim judicial manager’s consent to be appointed as such, and that the company intends to undergo judicial management. Where a JM order seems highly probable, then any refusal for an order for an IJM would just be postponing the inevitable and putting the company’s assets at further risk in the meantime. A provisional liquidator can be appointed where the company’s assets are in serious jeopardy. The High Court decision is found at Boulevard Plaza Sdn Bhd (receiver and manager appointed) [2019] 8 MLJ 732 (grounds of judgment). The Singapore High Court in Re KS Energy Ltd and another matter [2020] SGHC 198 granted an order for the appointment of interim judicial managers (IJM) over two companies upon the … Upon the appointment of a judicial manager or an interim judicial manager, the directors would largely have no more powers of management. Enter your email address to subscribe to this blog and receive notifications of new posts by email. We saw this in the appointment of the IJM over Hin Leong and HSBC applying for the appointment of the IJM of ZenRock. ING and Malayan Banking Bhd (Maybank) were the top creditors of Singapore commodity trader Agritrade International, which was last month placed under interim judicial management. Hyflux has been placed under judicial management (JM) following the High Court's rule on Monday, putting an end to a more than two-year-long saga of debt moratorium. This case relates to the law on schemes of arrangement and the grant of a restraining order. I have selected these case due to the interesting and novel points of law. The issue was whether the employees’ wages (all referred to under section 31 of the Employment Act) would have priority over the debenture holders’ debts. Presumably, in appropriate cases, judicial management would provide more stability and a better holistic recovery to the creditor-applicant as well as to the creditors as a whole. This Singapore decision will be useful for setting out the principles for the appointment of a IJM under Malaysia’s judicial management regime. Sorry, your blog cannot share posts by email. She is active in the field of restructuring and insolvency, and commercial disputes. Messrs Andrew Grimmett and Lim Loo Khoon c/o Deloitte & Touche LLP are appointed as joint and several Interim Judicial Managers of the Company and KS Drilling. The filing of a judicial management application triggers an automatic moratorium. Lee Shih and Huey Lynn write about the Singapore decision on the appointment of interim judicial managers. Sorry, your blog cannot share posts by email. The fresh Originating Summons would likely be assigned to a second Court. In the first set of proceedings, a restraining order may also be obtained. The companies wanted to successfully complete their project, the Selayang StarCity Pr… Singapore—Embattled water treatment firm Hyflux has been placed under judicial management, after Justice Aedit Abdullah on Nov 16 (Monday) said … Published. Following the gazetting of the notice U. SINGAPORE — Financially troubled oilfield services firm Swiber Holdings said yesterday that the High Court had approved its application to appoint KPMG as its interim judicial manager. SPH Interactive holds 60% of SSTG’s shares, whilst the remaining shares are held by Samuel Cranage Baker and Jeremy Lee Chuen Yang, who each hold 20%. The plain reading of the provision meant that any application for a restraining order must meet all the pre-conditions at the very start. Following the gazetting of the notice U. Interim management can be seen as the short-term assignment of a proven heavyweight interim executive manager to manage a period of transition, crisis or change within an organization. The news of ZenRock follows upon the bankruptcy of Singapore oil trader Hin Leong Trading. In particular, figures and specific proposals should be placed before the court to show that the company will be able to answer an application for judicial management.”. In April, Hin Leong Trading was placed under interim judicial management as the company was saddled with debts of S$5.7 billion to more than 20 banks. The High Court held that where there is a prima facie case for the making of a judicial management (JM) order, and where the assets or businesses of the company are in jeopardy, an order for an interim judicial management order would be appropriate. In 2020, these financial difficulties were then exacerbated by market conditions in the global oil sector, as well as by the Covid-19 pandemic. The court allows the interim stay until the date of the hearing of leave only, which has been fixed for December 21 at 10am,” she said in her ruling via email. This made the judicial management application almost inevitable. This allows breathing space for the company to restructure its debts. The company said in a statement major stakeholders, including suppliers, vendors and creditors, have expressed a willingness to work with the interim judicial managers to … HAMMERED by a US$4 billion debt pile and an ongoing probe by Singapore's white-collar crime buster, the city-state's largest oil trader Hin Leong Trading (HLT) was granted interim judicial management on Monday by the High Court. The subsections does not have wording to compel a provider of supplies to continue with the supplies. The Court dismissed the application. Here was a clear case of balance sheet insolvency of KSE and KSD. Next, the supplier cannot make it a condition for continued supply that outstanding charges before the appointment of the receiver must be paid. The case decided that when applying for a restraining order under a scheme of arrangement, the applicant must meet all the statutory pre-conditions even at the initial application stage. Attachments: SGX Announcement - IJMs Appointed_200418.pdf: Total size =356K: Related Announcements Like Comment Be the first to like this. The recent case of Leadmont Development Sdn Bhd v Infra Segi Sdn Bhd represents a landmark ruling in Malaysia being the first case to discuss and spell out the background and framework surrounding the law of judicial management in accordance with the provisions governing Malaysia’s judicial management scheme as contained in Division 8 Subdivision 2 of the Companies Act 2016. Ocean Tankers also withdrew its application for a debt moratorium which was filed last month. The Court then turned to consider the applicable principles. Financially troubled Singapore oil company Hin Leong Trading Pte Ltd on Monday (27 April) was reportedly granted interim judicial management by Singapore High Court in view of its crushing USD 3.85 billion debt and legal investigations. The Malaysian High Court recently delivered the very first grounds of judgement in relation to judicial management in Leadmont Development Sdn Bhd v Infra Segi Sdn Bhd & Another Case [2018] 10 CLJ 412.The provisions on judicial management which were introduced in Malaysia under the Companies … Ocean Tankers (Pte.) The central consideration is the protection of the assets and business of a company. This therefore requires the creditors’ views to be taken into account. Interim Judicial Managers: Description (Please provide a detailed description of the event in the box below) Please refer to the attached. An interim order for administration could be made where the assets or business of a company are in jeopardy, and there is a prima facie case for the making of the administration order. It is for the judicial manager to manage the company and to drive the restructuring and rehabilitation process. 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