The issue in The Royal Bank of Scotland NV v TT International Ltd [2012] SGCA 53 centered on whether a success-based professional fee arrangement should have been disclosed to the scheme creditors and the Court prior to the sanction of a scheme of arrangement.
During bankruptcy proceedings, much like in corporate insolvency, there is always the concern that the debtor will dispose or transfer away his property so as to keep it out of reach of his creditors.
"Subject to contract" clauses are often used in commercial transactions to indicate that an agreement is incomplete until the terms of a formal contract have been settled
Introduction
An unfair preference transaction will only be voided under the Companies Act if it is influenced by a desire to prefer the receiving party in the event of insolvency, and not if it is motivated by proper commercial considerations. In Tam Chee Chong and another v DBS Bank Ltd [2010] SGHC 331, the Singapore High Court had the opportunity to consider what constitutes proper commercial considerations.
A winding up application may be resisted by reason of a cross-claim against the petitioning creditor.
When a company enters financial difficulty, it faces conflicting interests. On the one hand, it must continue with commercial transactions to preserve and hopefully rehabilitate the company; on the other, it must respect its creditors’ rights by not making payments which may be seen as preferring certain creditors.
The case of Norwest Holdings Pte Ltd (in liquidation) v Newport Mining Ltd [2010] SGHC 144 involved
the sale of the shares of a company which owned phosphate mining and production facilities in the
Sichuan province.
InEcon Piling Pte Ltd v Sambo E&C Pte Ltd [2010] SGHC 120, the Singapore High Court rejected the proposition that where a debtor is released from its debt, its other joint-debtors are also automatically released.
Lee Eng Beng SC, Nigel Pereira and Jonathan Lee from the Business Finance and Insolvency Practice of Rajah & Tann LLP successfully represented the Appellant in Chee Yoh Chuang and Anor (as Liquidators of Progen Engineering Pte Ltd) v Progen Holdings Ltd [2010] SGCA 31.
In Econ Piling Ltd v Sambo E&C Pte Ltd [2010] SGHC 120, the Singapore High Court rejected the proposition that where a debtor is released from its debts, its other joint-debtors are also automatically released.