Singapore HC preemptively restrains creditor meeting
Company
Singapore High Court granted an order of restraint against creditors of a company in receivership, installing, essentially, a moratorium till the Applicants could restructure and rescue the company. Under Section 210(10) of the Companies Act, the court is empowered to restrain any such creditor meetings that could jeopardize attempts to revive the company, save when a resolution for winding up of the company had already been passed or agreement reached between the company and its creditors. The Court concluded that for exercise of its power, there must be a proposal for compromise or arrangement only, holding of a meeting was not a prerequisite. Determining the proposal of the Applicants to be sufficiently feasible under a “broad brush assessment” and nothing to show that the proposal was not bona fide, restraint order for 10 weeks was passed.
Tags : SINGAPORE RESTRAINT CREDITOR MEETING PREEMPT
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