In Energy Resource Investment Pte Ltd v International Golf Resorts Pte Ltd [2022] SGHC 134, the Singapore High Court was faced with an application to wind up a company on the ground that the company was unable to pay its debts. The company in question was the ultimate holding company of Joondalup Resorts, a luxury golf resort in Australia.
The Plaintiff had sought to wind up the company on the basis of three shareholder loans that it demanded payment on. The Defendant argued that two of the three loans in question were provided as capital and subject to a commercial understanding amongst the shareholders that would prevent the Plaintiff from unilaterally demanding payment of his loan. In relation to a third loan, the Defendant acknowledged this would be payable in future and it would have the means to pay this when due.
In its decision, the Court considered whether there was a triable issue in relation to the loans that were disputed and also whether the company had the means to make payment for the 2nd loan. The Court held in favour of the company, declining to order its winding up on the basis that the debts alleged to be owed were in fact disputed, and that Plaintiff had failed to establish the Defendant was insolvent and therefore unable to repay its loans.
The company was successfully represented by Vikram Nair, Foo Xian Fong, Glenna Liew, Mazie Tan and Ashwin Menon of Rajah & Tann Singapore LLP.
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