Under Singapore’s restructuring and insolvency regime, the Court may intervene in a decision of a judicial manager if it is unfairly prejudicial to the interests of the company’s creditors or members. The test for when the Court will intervene, and the relevant standard of unfair prejudice, had yet to be considered in Singapore case law. In the novel decision of Re HTL International Holdings Pte Ltd [2021] SGHC 86, the Singapore High Court set out the applicable principles in determining unfair prejudice, clarifying that it would not interfere with the decisions of a judicial manager unless there is plainly wrongful conduct, conspicuous unfairness, or perversity.
In this case, the Court rejected an application to intervene in a judicial managers’ decision to sell assets of the company to one party (the Purchasers) rather than another. The Purchasers were successfully represented by Mark Cheng, Chew Xiang, Ho Zi Wei and Tan Tian Hui of Rajah & Tann Singapore LLP (with Audent Chambers LLC as instructed counsel).
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