Introduction
Introduction
In Sun Electric Power Pte Ltd v RCMA Pte Ltd (formerly known as Tong Teik Pte Ltd) [2021] SGCA 60 (“Sun Electric”), the Singapore Court of Appeal (per Justice Judith Prakash) addressed in its written ground of decision (“GD”) the questions of: (i) what is the applicable test for the purpose of determining insolvency under s 254(2)(c) of the Companies Act (Cap 50, 2006 Rev Ed) (“Companies Act”); and (ii) who should be the appropriate party to control the conduct of the appeal, as well as to bear the responsibility of any costs incurred during and after the appeal, following a company’s right
In Re PT MNC Investama TBK [2020] SGHC 149 (“Re PT MNC”), the Singapore High Court (per Justice Aedit Abdullah) addressed, for the first time in a written grounds of decision (“GD”), the question of whether a foreign company has the requisite standing to apply for a Section 211B moratorium under the Companies Act (the “Act”).
On 23 July 2020, the Ministry of Law announced that the Insolvency, Restructuring and Dissolution Act (the “IRDA”), together with its 48 related pieces of subsidiary legislation, will come into force on 30 July 2020.
No one could have predicted the impact of the COVID-19 pandemic on businesses and economies worldwide. It has crippled companies all over the world with household names such as Macy’s in the US filing for bankruptcy and closer to home, the collapse of commodities trading giant Hin Leong Trading. Unfortunately, analysts speculate the worst is yet to come.
Western financial centres see insolvency proceedings as gateways to potential business rescue. In Asia, insolvency is seen as a procedure ending in liquidation.
IN ASIA, there has traditionally been a stigma associated with corporate insolvencies. The taint of insolvency can be hugely value-destructive; it can destroy the goodwill of the business, and brand the managers and controllers as failures and social outcasts.
