Singapore’s highest court has definitively held that foreign insolvency, restructuring or liquidation proceedings concerning solvent companies should be recognised in Singapore (Re Ascentra Holdings, Inc (in official liquidation) v SPGK Pte Ltd [2023] SGCA 32), overturning a first instance decision taking the contrary view.
The Singapore Court of Appeal accepted the first appellant’s (“Ascentra“) submission
APAC Restructuring, Turnaround, and Insolvency Notes
Blog Authors
Latest from APAC Restructuring, Turnaround, and Insolvency Notes
Good things take time: Parliamentary Joint Committee delivers report on Australia’s corporate insolvency framework
The Parliamentary Joint Committee on Corporations and Financial Services (the Committee) has delivered its report following an inquiry into the “effectiveness of Australia’s corporate insolvency laws in protecting and maximising value for the benefit of all interested parties and the economy”.[1]
The Committee has recommended that, as soon as practicable, the Australian government should…
Past its peak: the High Court of Australia confirms the abolition of the peak indebtedness rule for unfair preferences
By Brian
In the much-anticipated decision of Bryant v Badenoch Integrated Logging Pty Ltd [2023] HCA 2 (Badenoch (HCA)), the High Court of Australia (the HCA) has now confirmed that the peak indebtedness rule may not be used when assessing the quantum of an unfair preference claim arising from a continuing business relationship. While the decision is…
First decision on Australia’s ipso facto stay in voluntary administration
By Brian
The Federal Court of Australia (Court) has handed down the first reported decision on the ipso facto stay provisions contained in the Corporations Act 2001 (Cth) (Act). In Rathner, in the matter of Citius Property Pty Ltd (Administrator Appointed) [2023] FCA 26 the Court examined the operation of the voluntary administration ipso facto stay contained…
TMA submissions on corporate insolvency in Australia
By Brian
Herbert Smith Freehills’ restructuring, turnaround and insolvency team has supported the Turnaround Management Association of Australia (the TMA) in preparing the TMA’s submissions (TMA Submissions) to the Parliamentary Joint Committee on Corporations and Financial Services (the Committee) for the purposes of its inquiry into corporate insolvency in Australia.
On 28 September 2022, the Committee began an…
Atlas shrugged: the limits of an administrator’s lien over secured property
By Brian
Chief Justice Hammerschlag, sitting in the New South Wales Supreme Court (the Court), has delivered a judgement of importance to secured creditor and insolvency practitioners alike in Volkswagen Financial Services Australia Pty Ltd v Atlas CTL Pty Ltd (Recs and Mngrs Apptd) (In liq) [2022] NSWSC 573 (Atlas).
The Atlas case involved the administrators trading…
Parliamentary inquiry into corporate insolvency in Australia
By Brian
The Parliamentary Joint Committee on Corporations and Financial Services (the Committee) has commenced an inquiry into the “effectiveness of Australia’s corporate insolvency laws in protecting and maximising value for the benefit of all interested parties and the economy”.[1]
On its terms, the inquiry appears broad ranging, and is arguably the broadest review of Australia’s…
BTI v Sequana – Key UK Supreme Court insolvency ruling clarifies stance on creditor duties
By Brian
The Supreme Court of the United Kingdom (the Supreme Court)(UK) has delivered the much anticipated decision in BTI 2014 LLC v Sequana SA [2022] UKSC 25 confirming the existence, content and timing of the duty of directors to have regard to creditors where a company is insolvent. Whilst a UK decision, it is likely to…
Sending disclaimer to the sawmill: A liquidator’s power to disclaim land subject to environmental liabilities following the Australian Sawmilling case
By Brian
In The Australian Sawmilling Company Pty Ltd (in liq) v Environment Protection Authority [2021] VSCA 294 (Australian Sawmilling), the Victorian Supreme Court of Appeal (VSCA) dismissed an appeal by the liquidators of The Australian Sawmilling Company Pty Ltd (TASCO) against a decision of Garde J of the Victorian Supreme Court (VSC) setting aside the liquidators’…
COMI as first port of call? Harris J lays out a modified common law framework for recognising foreign insolvency proceedings in Hong Kong
By Brian
Historically, the Hong Kong courts have generally recognised foreign insolvency proceedings commenced in the jurisdiction in which the company is incorporated. This may no longer be the case in Hong Kong following the recent decision of Provisional Liquidator of Global Brands Group Holding Ltd v Computershare Hong Kong Trustees Ltd [2022] HKCFI 1789 (Global Brands).…