A winding up application may be resisted by reason of a cross-claim against the petitioning creditor.
"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
The companies at the heart of these two cases were Jurong Technologies Industrial Corporation Ltd ("JTIC") and its wholly owned subsidiary Jurong Hi-Tech Industries Pte Ltd ("JHTI") (collectively, the "Companies").
The Singapore Court of Appeal recently issued a landmark decision on schemes of arrangement in the case of The Royal Bank of Scotland NV & Ors v TT International Limited [2012] SGCA 9.
The appellant was made bankrupt in January 1998. Some time after she had been made bankrupt, her sister passed away.
SAAG Oilfield Engineering (S) Pte Ltd (formerly known as Derrick Services Singapore Pte Ltd) v Shaik Abu Bakar bin Abdul Sukol & Anor and another appeal [2012] SGCA 7
In Petroprod Ltd (in official liquidation in the Cayman Islands and in compulsory liquidation in Singapore) v Larsen Oil and Gas Pte Ltd [2010] SGHC 186 the Singapore High Court considered whether an action brought to avoid transactions that allegedly violated insolvency laws should be stayed in favour of arbitration.
The case of Petroprod Ltd (in official liquidation in the Cayman Islands and in compulsory liquidation in Singapore) v Larsen Oil and Gas Pte Ltd [2010] SGHC 186 (“Petroprod Ltd”) is significant as the Singapore High Court decided that claims which arise from avoidance provisions in Singapore insolvency laws are non-arbitrable as they exist for the benefit of the general body of creditors as a whole.
In Pacific King Shipping Pte Ltd & Anor v Glory Wealth Shipping Pte Ltd, one of the key issues which the Singapore High Court had to consider was whether the defendant was precluded from commencing winding up proceedings against the plaintiffs via section 254(2)(a) read with section 254(1)(e) of the Companies Act (the “CA”) on the basis of a debt that was founded on a foreign arbitration award which had not been enforced.
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.