Introduction  

In order to preserve a bankrupt's assets for distribution to creditors, any disposition of the bankrupt's property from the date of the bankruptcy application is considered void. However, this position is not absolute – the Court may consent to or ratify the disposition. In Sutherland, Hugh David Brodie v Official Assignee [2021] SGHC 65, the Singapore High Court set out the applicable principles that it would take into account when considering whether to ratify such disposition.

Introduction  

Introduction

The COVID-19 pandemic has had a devastating impact on many businesses, with micro and small companies ("MSCs") being more vulnerable to potential insolvency. Whilst the existing Insolvency, Restructuring and Dissolution Act of 2018 ("IRDA") generally provides restructuring and winding up processes for companies with substantial assets, these processes may not be wholly suited for distressed MSCs which have now been depleted of their already limited resources, as a result of the pandemic.

The case in question is CIMB Bank Bhd v. World Fuel Services (Singapore) Pte Ltd [2021] SGCA 19. The decision was delivered on 5 March 2021 by the Singapore Court of Appeal.

The judgment addresses issues surrounding claims by a bank under assignments and other security documents over rights in and receivables under commodities supply contracts, and overturns the Singapore High Court decision in CIMB Bank Bhd v. World Fuel Services (Singapore) Pte Ltd [2020] SGHC 117.

Summary

Introduction  

The Insolvency, Restructuring and Dissolution Act 2018 ("IRDA") allows a company proposing or intending to propose a scheme of arrangement to its creditors to apply to the Singapore High Court ("Court") for a moratorium restraining proceedings against the company. The Court may also extend the moratorium on application to cover a subsidiary or holding company. This is to allow the company some breathing room to conduct its restructuring efforts.

Guidance from the General Division of the Singapore High Court on the extent to which the protections afforded by the statutory moratoria for schemes of arrangement conflict with the ability of maritime claimants to protect their interests.

Introduction

Introduction

In the midst of the COVID-19 pandemic, many businesses have been severely impacted. The Singapore government thus introduced the Simplified Insolvency Programme ("SIP"), which seeks to support micro and small companies ("MSCs") to restructure their debts or to wind up. The SIP has come into effect on 29 January 2021.

The SIP comprises two separate programmes which eligible MSCs may apply for:

The COVID - 19 pandemic has had a tremendous and unprecedented impact on the global economy.To mitigate this, many governments have introduced temporary relief measures to help local businesses.

This article is produced by CMS Holborn Asia, a Formal Law Alliance between CMS Singapore and Holborn Law LLC.

A. Overview

In Denka Advantech Pte Ltd v Seraya Energy Pte Ltd [2020] SGCA 119, the Singapore Court of Appeal (“SGCA”) had the opportunity to consider the applicable law with regard to penalty and liquidated damages (“LD”) clauses.