Rajah & Tann Singapore successfully represented one of the largest bondholders in Yap Sze Kam v Yang Kee Logistics Pte Ltd [2023] SGHC 43, where the Court had to consider the interplay between the judicial management regime and the receivership regime.
In this matter, bondholders with a debt of about S$110 million had appointed receivers over the majority of the shares of the relevant companies, thus achieving effective control of the companies. However, a creditor and a founder of the companies sought to appoint judicial managers over the companies instead. The Singapore High Court declined to appoint judicial managers in the circumstances, finding that it would not achieve the statutory purposes of judicial management, and would not be in the best interests of the creditors as a whole.
The decision demonstrates the areas where conflict may arise between the judicial management and receivership, and how the Court may resolve such tensions by addressing the interests of the various groups of creditors.
Read more about the matter: https://eoasis.rajahtann.com/eoasis/lu/pdf/2023-03_Receivership-vs-Judicial_Management.pdf
The matter is led by Partner Jansen Chow.
