Second, the Court also looked at the legislative history of the introduction of the predecessor provision of section 176(10A). The creditors’ views must be sought first and this can be difficult if the company is already facing legal action. The two companies in this case were KS Energy Ltd (KSE), a public-listed company on the Main Board of the Singapore Exchange, and KS Drilling Pte Ltd (KSD) (being a KSE subsidiary). The subsections does not have wording to compel a provider of supplies to continue with the supplies. The judicial management orders were to facilitate the rehabilitation of these two companies. In light of the above, OCBC claimed it had lost confidence in the management of KSE and KSD. Geraldine Goon examines the first reported decision in Malaysia on judicial management. She graduated from the University of Cambridge. This decision allowed a receiver or receiver and manager to obtain a declaration under the CA 2016 to compel a provider of supplies (including utilities such as water, electricity, gas and telecommunications) to continue supply. 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. 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 … However, the Wellcom decision had a comment or suggestion that an applicant company should still seek creditors’ views first and then only file the judicial management application. This continued supply is subject to an assurance, undertaking or guarantee to pay for services and charges incurred during the period of receivership. A common feature of corporate rescue mechanisms is that there is to be a moratorium to stay legal proceedings against the distressed company. 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. This destroys value. The effect of this decision is that it makes it more difficult for an applicant company to obtain an urgent restraining order. I am organising the case study session where it will feature a hypothetical judicial management case study. The passing of the Malaysian Companies Bill 2015 (Companies Act 2016), which will replace the Companies Act 1965 (Companies Act 1965), marks the most comprehensive legislative change in Malaysia’s corporate law in 50 years.The Companies Act 2016 also makes some significant changes to Malaysia’s corporate insolvency regime, as it introduces two new insolvency processes: judicial management … The Court ruled that the Employment Act was to take priority. The Court must consider strict proof and evidence when deciding on whether to make a judicial management order. An article reviewing Judicial Management in Malaysia. 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. The applicant is to disclose to the Court the creditors’ views. Upon the appointment of a judicial manager or an interim judicial manager, the directors would largely have no more powers of management. 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. The case decided that when applying for a restraining order under a scheme of arrangement, the applicant must meet all the statutory pre-conditions even at the initial application stage. 2 positions at gatewayrecruitinginc and bayer including Senior Manager, Trade Operations, Clinical Study Manager related to interim project manager. This allows breathing space for the company to restructure its debts. Gas District Cooling (GDC) is the supplier of chilled water for all air conditioning systems in Putrajaya. Hyflux placed under judicial management, restructuring firm Borrelli Walsh appointed as judicial managers. This is instead of pursuing their secured rights such as the appointment of a receiver or outright putting the company into liquidation. Hin Leong under interim judicial management. Hin Leong is being investigated by the Commercial Affairs Department (CAD), which is the white-collar crime unit of Singapore police. PwC executives have up to eight weeks to file a preliminary report to creditors after reportedly being appointed interim judicial managers at Hin Leong Trading. But practically, in an urgent restructuring situation and if the company is facing legal action or winding up proceedings, it may not be feasible to have to obtain creditors’ views from the very start. The leave question is whether an Order made pursuant to an ex parte application under sections 366 and 368 of the CA 2016 subsequently served on the creditors is an abuse of Court process which renders the entire court sanctioned scheme liable to be set aside. 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. Tue, Nov 17, 2020 - 5:50 AM. A pre-trial conference has been fixed for the judicial management applications on 4 June, whilst the hearing date for the interim judicial managers applications has yet to be fixed. All Interim Manager jobs in Malaysia on Careerjet.com.my, the search engine for jobs in Malaysia Singapore. This was where there was an interim order for administration. 1. Two Singapore-based employees of accounting firm EY were appointed interim judicial managers of Ocean Tankers yesterday. Singapore-based commodity trader Agritrade International Pte Ltd, which has $1.55 billion due to creditors, has been placed under interim judicial … As for the JM Application, a Pre-Trial Conference has been fixed for 10 September 2020. It would be common practice to nonetheless disclose to the second Court all the proceedings that had already taken place and any ongoing legal actions. There is an ongoing judicial management matter where the judicial management order has been extended beyond the 12 months. Enter your email address to subscribe to this blog and receive notifications of new posts by email. In the first set of proceedings, a restraining order may also be obtained. Ocean Tankers also withdrew its application for a debt moratorium which was filed last month. The High Court case of Re Leadmont Development Sdn Bhd [2018] MLJU 1320; [2018] 1 LNS 1420 is the first decision on judicial management in Malaysia. HAMMERED by a US$4 billion debt pile and an ongoing probe by Singapore's white-collar crime buster, the city-state's largest oil trader Hin Leong Trading (HLT) was granted interim judicial management on Monday by the High Court. Following the gazetting of the notice U. ING and Malayan Banking Bhd (Maybank) were the top creditors of Singapore commodity trader Agritrade International, which was last month placed under interim judicial management. The interim judicial manager is appointed by filing either a shareholder’s resolution or board resolution for the appointment, and lodging statutory declarations with the Official Receiver and ACRA stating the interim judicial manager’s consent to be appointed as such, and that the company intends to undergo judicial management. The filing of a judicial management application triggers an automatic moratorium. This is by virtue of section 406(1) of the Companies Act 2016 stating: 1. Thanks. the overriding discretion of the Court to make a judicial management order if public interest requires it and, if appropriate, to appoint an interim judicial manager; and This case relates to the law on schemes of arrangement and the grant of a restraining order. 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. 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. Hamid Sultan, 65, filed the application for leave for judicial review to challenge the decision of the JEC to … There are no grounds of judgment that I am aware of. OCBC alleged that KSE Group continued to suffer heavy financial losses. 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. HAMMERED by a US$4 billion debt pile and an ongoing probe by Singapore's white-collar crime buster, the city-state's largest oil trader Hin Leong Trading (HLT) was granted interim judicial management on Monday by the High Court. To complete the series, I now feature the top five restructuring and insolvency cases in Malaysia for 2019. In particular, the restraining order application must provide the name of an individual nominated by a majority of the creditors to be appointed as a director of the company undertaking the scheme of arrangement. The High Court decision is found at Boulevard Plaza Sdn Bhd (receiver and manager appointed) [2019] 8 MLJ 732 (grounds of judgment). Arising from this second point, it would be prudent to ensure that there is only one set of the same Court proceedings. The passing of the Malaysian Companies Bill 2015 (Companies Act 2016), which will replace the Companies Act 1965 (Companies Act 1965), marks the most comprehensive legislative change in Malaysia’s corporate law in 50 years.The Companies Act 2016 also makes some significant changes to Malaysia’s corporate insolvency regime, as it introduces two new insolvency processes: judicial … The judicial manager is empowered with certain powers akin to that of a liquidator in a winding up. 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. Third, the Court must justly, economically and expeditiously dispose of the judicial management application and any appeal process. Post was not sent - check your email addresses! No court order  is necessary to allow for a moratorium. ST PHOTO: DESMOND WEE. Eventually, GDC threatened to terminate further supply of chilled water unless payment of the outstanding charges was made. He noted that the statutory provisions contain no express guidance as to the circumstances in which an IJM should be ordered. This Singapore decision will be useful for setting out the principles for the appointment of a IJM under Malaysia’s judicial management regime. Set out below are the findings by the Court of Appeal. The cases featured below range from judicial management, schemes of arrangement and the receiver’s ability to have continued supply of utilities. Such a distressed company may then have to opt for a judicial management application which triggers an automatic moratorium. Firstly, a temporary or interim moratorium takes effect immediately upon the filing of an application for Judicial Management pursuant to Section 410 of the Companies Act 2016. There is a similar provision under section 414(7) of the CA 2016 that also allows a judicial manager to utilise such a similar mechanism. For such an insolvent company facing a judicial management application, the Court made the following comment: “While miracles can sometimes happen even in commercial settings, some evidence would typically need to be provided of a “white knight” on the verge of coming to the rescue. First, the High Court undertook a plain reading of the relevant provision i.e. Sorry, your blog cannot share posts by email. These creditors had opposed the scheme of arrangement. Without a supply of essential utilities, a company in receivership would not be able to continue business and would shut down. I have selected these case due to the interesting and novel points of law. After this meeting, the company would move on to  final stage to file a fresh Originating Summons to obtain Court sanction of the creditor-approved scheme. The interim judicial manager is appointed by filing either a shareholder’s resolution or board resolution for the appointment, and lodging statutory declarations with the Official Receiver and ACRA stating the interim judicial manager’s consent to be appointed as such, and that the company intends to undergo judicial management. Further details of Zenrock’s IJM and imminent JM are available at straitstimes.com. The Court of Appeal granted the declarations sought by the receiver and manager to essentially compel GDC to continue supply of chilled water. In this situation, a permanent role may be unnecessary or impossible to find on short notice. Second, this immediate danger to the assets or business of a company could be through fraud or abandonment of the company by the management of the company. So, the Court will consider the nature and imminence of the risks facing the company’s business and assets. One bona fide approach suggested was for the applicant to write to all the concerned parties to obtain their views before the application is filed. Considering the entirety of the circumstances, and the risk of further deterioration of assets the Court found that an order for IJM was appropriate. Between 2016 to 2019, KSE suffered financial difficulties. The Explanatory Statement of the Bill stated that the introduction of these four pre-conditions was to make sure that “creditors are aware of an application” and that “specific conditions” needed to be met “to avoid any abuse.”. interim judicial managers (IJMs) Vallianz receives Swiber-related letters of request for payments amounting to US$63.5 mil SINGAPORE (Aug 31): Vallianz Holdings announced that entities within its group have received letters from the interim judicial managers (IJMs) of Swiber Group requesting for payments totalling US$6 Interim Judicial Managers Appointed Announcement Reference SG200214OTHR0QDQ Submitted By (Co./ Ind. In a full-day remote court hearing attended by lawyers for six banks and an unsecured trade creditor, ZenRock had contested HSBC's application for interim judicial managers from KPMG Services to be appointed, pending the making of a judicial management order. PHOTO: REUTERS. Executives from accounting firm PwC have been appointed as interim judicial managers of Hin Leong, the three sources said on Monday. Case Update: The Interim Judicial Manager to Protect Assets in Jeopardy. The Court cannot merely rely on surmise and conjecture. These were creditors that had ongoing legal actions against the company. For receivership sales, the receiver and manager will have more certainty in how to assess the priority of the employees’ outstanding wages. BM Mobility Ltd. published this content on 14 February 2020 and is solely responsible for the information contained therein. the Interim JM Application. The original Orders were obtained ex parte. Second, the Court of Appeal made other comments generally when the Court hears a judicial management application. The management of KSE and KSD was helmed by Mr Kris Taenar Wiluan, his son and his son-in-law. This interim moratorium lasts until either the application for Judicial Management is dismissed or is allowed. The IJM remains in control of the company until the full determination of the judicial management application. The details of the interim judicial managers’ office address are as follows: 8 Marina View #40-04/05 Asia Square Tower 1 Singapore 018960 SINGAPORE (Aug 14): Xihe Holdings (Pte) Ltd, a ship owner linked to troubled Singapore oil trader Hin Leong and its founder's family, has been placed under interim judicial management, The Business Times reported today.A Singapore High Court appointed Grant Thornton Singapore as supervisor of Xihe during a chambers hearing yesterday, according to the newspaper. 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. 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 (Perwaja Steel Sdn Bhd v RHB Bank Berhad & 789 Others … Judicial management is similar and modelled after administration. Fourth, the Court also drew a comparison and analogy with the appointment of provisional liquidators (now known as interim liquidators under Malaysia law). The link stated above refers to Grounds of Judgment instead of your write up. 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