Under Part 14 of the Insolvency, Restructuring and Dissolution Act 2018, which deals with bankruptcy proceedings, an insolvent debtor intending to propose a voluntary arrangement may apply to Court for a moratorium restraining bankruptcy applications and other proceedings against the debtor so as give breathing room for consideration of the proposal. In Re Sifan Triyono [2021] SGHC 55, the Singapore High Court highlighted that, in considering applications for such a moratorium, it would filter out proposals which are not “serious and viable”.
The High Court in this case dismissed an application for an interim moratorium on the basis that the debtor had not shown his proposal for voluntary arrangement to be serious or viable due to a lack of clarity and transparency. This Update provides a summary of the case and highlights the key points to be observed in a proposal for a voluntary arrangement.
For more information, click here to read the full Legal Update.
