Singapore-based commodity trader Agritrade International Pte Ltd, which has $1.55 billion due to creditors, has been placed under interim judicial … After the filing of a judicial management application, the applicant may also apply to appoint an IJM over the company. Tue, Nov 17, 2020 - 5:50 AM. As for the JM Application, a Pre-Trial Conference has been fixed for 10 September 2020. This is instead of pursuing their secured rights such as the appointment of a receiver or outright putting the company into liquidation. Set out below are the findings by the Court of Appeal. This decision is useful in setting out the principles for the appointment of interim judicial managers. A provisional liquidator can be appointed where the company’s assets are in serious jeopardy. OCBC’s engagement and approval of any contrary scheme or restructuring proposal would have been required. It held that chilled water did not come under the ambit of “supplies” in sections 392(6) and (7). He resigned from his position as Chairman and CEO and was replaced by his son. These were creditors that had ongoing legal actions against the company. The court allows the interim stay until the date of the hearing of leave only, which has been fixed for December 21 at 10am,” she said in her ruling via email. To entitle creditors to vote at the meeting, creditors must lodge their proxy and proof with the Judicial Managers no later than 4.00 pm on Wednesday (4 November) if they have not done so already. Do NOT follow this link or you will be banned from the site. It is sometimes common practice for a company to first file an Originating Summons in the first court to obtain leave to convene the scheme creditors’ meeting. The Court granted the orders sought by OCBC. Perwaja Steel – Receivership Priority. Geraldine Goon examines the first reported decision in Malaysia on judicial management. Two Singapore-based employees of accounting firm EY were appointed interim judicial managers of Ocean Tankers yesterday. The IJM remains in control of the company until the full determination of the judicial management application. Photo credit: Drew Beamer on Unsplash. The Court decided that those provisions governs public utilities and does not include chilled water. An interim order for administration could be made where the assets or business of a company are in jeopardy, and there is a prima facie case for the making of the administration order. Here was a clear case of balance sheet insolvency of KSE and KSD. The judicial manager is empowered with certain powers akin to that of a liquidator in a winding up. An application for the full-fledged JM is scheduled to be heard on 21 May 2020. The cases featured below range from judicial management, schemes of arrangement and the receiver’s ability to have continued supply of utilities. Co-written by Pang Huey Lynn. The recent case of Leadmont Development Sdn Bhd v Infra Segi Sdn Bhd represents a landmark ruling in Malaysia being the first case to discuss and spell out the background and framework surrounding the law of judicial management in accordance with the provisions governing Malaysia’s judicial management scheme as contained in Division 8 Subdivision 2 of the Companies Act 2016. (CIMB Islamic Bank Bhd v Wellcom Communications (NS) Sdn Bhd & Anor [2019] 4 CLJ 1, CA), Judges: Hamid Sultan Abu Backer JCA (delivering the judgment of the court), Hasnah Mohammed Hashim JCA, and Hanipah Farikullah JCA (grounds of judgment). These provisions are meant to allow the receiver to stabilise and maintain the going concern status of an ailing company. First, the Court of Appeal decided that once the judicial management application is dismissed, there cannot be such a stay order to revive the moratorium effect. Hyflux has been placed under judicial management (JM) following the High Court's rule on Monday, putting an end to a more than two-year-long saga of debt moratorium. The original Orders were obtained ex parte. Would that revive the moratorium protection? These provision in receivership and judicial management also only refers to “any of the supplies including water, electricity, gas and telecommunications” but does not limit the type of supplies. The judicial management application was filed by an unsecured working group (UWG) of bank lenders on 13 August. Name) Andrew Grimmett Designation Interim Judicial Manager Description (Please provide a detailed description of the event in the box below) Please … The interim judicial management application by Ocean Tankers did not face any objection from its more than 30 creditors. approve the costs of the interim judicial management and judicial management (including legal costs) Any other business. SINGAPORE — Financially troubled oilfield services firm Swiber Holdings said yesterday that the High Court had approved its application to appoint KPMG as its interim judicial manager. The creditors’ views must be sought first and this can be difficult if the company is already facing legal action. This decision has important applications to debenture-appointed receivers, the employees where the place of employment is sold by a receiver, and to the debenture holder. I am aware of at least two instances where the company was the applying for the judicial management order and the company itself applied for the IJM. This decision will restrict the ability of a company to apply ex parte for a restraining order and for leave to convene the scheme creditors’ meeting. Sections 392(6) and (7) of the CA 2016 essentially states that a receiver can make a request to the supplier for continued supply of. A receiver and manager was appointed over a company. OCBC held about 61.14% of KSE’s total liabilities making them a major, or more aptly, the majority creditor. 1. They have up to eight weeks to file a preliminary report on Hin Leong, two of the sources said. Interim Judicial Managers of the Company and RKS (“Interim Judicial Managers”) until the determination of the JM Applications or until further order; (c) The Interim Judicial Managers be empowered and authorised to exercise all such functions, powers and duties which are exercisable by a Judicial Manager under Part VIIIA and the Eleventh The Malaysian High Court recently delivered the very first grounds of judgement in relation to judicial management in Leadmont Development Sdn Bhd v Infra Segi Sdn Bhd & Another Case [2018] 10 CLJ 412.The provisions on judicial management which were introduced in Malaysia under the Companies … A common feature of corporate rescue mechanisms is that there is to be a moratorium to stay legal proceedings against the distressed company. In this case however, the Court held that any refusal of an order for IJM would merely be postponing the inevitable outcome, whilst putting the companies’ assets at risk of further deterioration. 26 October, 2020 Lee Shih. Before the appointment of the receiver and manager, there were already amounts owing by the company to GDC. The notice published Grant Thornton Singapore Private Limited have been appointed as joint and several interim judicial managers of each of the above companies. The Singapore High Court in Re KS Energy Ltd and another matter [2020] SGHC 198 granted an order for the appointment of interim judicial managers (IJM) over two companies upon the … There are no grounds of judgment that I am aware of. Third, the Court must justly, economically and expeditiously dispose of the judicial management application and any appeal process. The Malaysia Insolvency Conference 2018 will be held this Thursday 22 November 2018. 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