The defendant in this case was the liquidator of Kaki Bukit Industrial Park Pte Ltd (“Company”).

On April 1, 2012 Drydocks World LLC (DDW) and its subsidiary Drydocks World — Dubai LLC (DDW Dubai), a Dubai- and Asia-based ship building and repair company that is wholly owned by Dubai World, became the first company to commence a reorganization proceeding in the Special Tribunal¹ (the Tribunal) created by Dubai Decree No. 57 for 2009 (Decree 57) and avail itself of Decree 57’s integrated legal framework.

Facts

The plaintiff (“Mdm Cheo”) commenced divorce proceedings against her husband (“the bankrupt”) two weeks after she knew that the latter had been served a statutory demand by a bank to pay around US$8.67 million.

Global Distressed Alpha Fund I Ltd Partnership v Integrated Financial Advisory Ltd [2012] SGHC 152.

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.

Where a plaintiff sought to claw-back payments made to the defendant on the basis that they amounted to an unfair preference, or a transaction at an undervalue, or had been made with intent to defraud, held that such a claim could not be arbitrated but had to be dealt with in court proceedings:

In Larsen Oil and Gas Pte Ltd (in official liquidation in the Cayman Islands and in compulsory liquidation in Singapore) [2011] SGCA 21, the Singapore Court of Appeal endorsed, and elaborated on, the stance taken by the High Court concerning the relationship between arbitration and insolvency

In Larsen Oil and Gas Pte Ltd v Petroprod Ltd (in official liquidation in the Cayman Islands and in compulsory liquidation in Singapore) [2011] SGCA 21, the Singapore Court of Appeal endorsed, and elaborated on, the stance taken by the High Court concerning the relationship between arbitration and insolvency.

Where a contract contains a non-assignment clause, a liquidator may not, as part of his liquidation of an insolvent company's assets, assign the contract to a third party without first seeking the consent of the contracting counterparty:

-- Owners of Strata Plan 5290 v CGS & Co Pty Ltd (Australia, New South Wales, Court of Appeal, 30 June 2011)

A winding up application may be resisted by reason of a cross-claim against the petitioning creditor.