Re: PACIFIC ANDES RESOURCES DEVELOPMENT LIMITED

Re: PACIFIC ANDES RESOURCES DEVELOPMENT LIMITED

The court held that s 210(10) and the court's inherent jurisdiction do not permit general extraterritorial moratoria; an applicant must demonstrate sufficient nexus or assets in Singapore for locus standi (PARD had sufficient nexus; the Subsidiaries did not); a s 210(10) moratorium may be granted where there is a...

Source-derived case information.

Citation
[2016] SGHC 210
Parties
Applicant: Pacific Andes Resources Development Ltd; Applicant: Parkmond Group Limited; Applicant: Pacific Andes Enterprises (BVI) Limited; Applicant: Pacific Andes Food (Hong Kong) Limited; Creditor: Bank of America, N.A.; Creditor: Malayan Banking Berhad (Maybank); Creditor: Sahara Investment Group Pte Ltd; Creditor: Cooperatieve Rabobank U.A.; Creditor: Standard Chartered Bank (Hong Kong) Limited; Creditor: DBS Bank Ltd; Creditor: Informal Steering Committee (bondholders); Creditor: Steering Committee of Bondholders; Bondholder: Kwek Fei Joseph; Bondholder: Wang Chan Tak
Court
General Division of the High Court
Jurisdiction
Singapore
Judgment Date
27 September 2016
Case Number
HC/OS 668/2016|HC/OS 813/2016|HC/OS 812/2016|HC/OS 814/2016
Procedural Posture
Originating Summons Under S 210(10) Companies Act (moratorium/scheme of Arrangement) / Hearing on Extension and Applications to Set Aside Orders; Judgment on Interim and Final Relief
Outcome
The court set aside the Obligor Orders (moratoria granted to subsidiaries) except insofar as they affected PAF, varied the PARD Orders to limit the moratorium to proceedings in Singapore, declined to extend PAF's moratorium (it expired 26 September 2016), and indicated willingness to extend PARD's moratorium subject...
Legal Topics
Moratorium Under S 210(10), Territoriality of Relief, Locus Standi/nexus, Scheme of Arrangement Procedure, Recognition and Comity, Gibbs Principle
Source Language
english
Companies Law Insolvency Law Cross Border Insolvency Civil Procedure Moratorium Under S 210(10) Territoriality of Relief Locus Standi/nexus Scheme of Arrangement Procedure +2 more

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Parties

Pacific Andes Resources Development Ltd

Applicant

Parkmond Group Limited

Applicant

Pacific Andes Enterprises (BVI) Limited

Applicant

Pacific Andes Food (Hong Kong) Limited

Applicant

Bank of America, N.A.

Creditor

Malayan Banking Berhad (Maybank)

Creditor

Sahara Investment Group Pte Ltd

Creditor

Cooperatieve Rabobank U.A.

Creditor

Standard Chartered Bank (Hong Kong) Limited

Creditor

DBS Bank Ltd

Creditor

Informal Steering Committee (bondholders)

Creditor

Steering Committee of Bondholders

Creditor

Kwek Fei Joseph

Bondholder

Wang Chan Tak

Bondholder

Procedural Posture

Originating Summons Under S 210(10) Companies Act (moratorium/scheme of Arrangement) / Hearing on Extension and Applications to Set Aside Orders; Judgment on Interim and Final Relief

Legal Issues

  1. 1 Whether s 210(10) or inherent jurisdiction permits extraterritorial moratoria (Jurisdiction Issue)
  2. 2 Whether the applicants have locus standi under s 210 (sufficient nexus) (Locus Standi Issue)
  3. 3 Minimum content/bona fides of a plan for relief under s 210(10) and whether creditor opposition above statutory thresholds should defeat a s 210(10) moratorium (s 210(10) Issue)

Ratio Decidendi

The court held that s 210(10) and the court's inherent jurisdiction do not permit general extraterritorial moratoria; an applicant must demonstrate sufficient nexus or assets in Singapore for locus standi (PARD had sufficient nexus; the Subsidiaries did not); a s 210(10) moratorium may be granted where there is a bona fide proposal with reasonable prospect of success even if particulars are contingent on parallel foreign proceedings, subject to stringent court supervision and conditions; creditor opposition meeting statutory voting thresholds at the s 210(10) stage is not decisive.

Court Disposition

The court set aside the Obligor Orders (moratoria granted to subsidiaries) except insofar as they affected PAF, varied the PARD Orders to limit the moratorium to proceedings in Singapore, declined to extend PAF's moratorium (it expired 26 September 2016), and indicated willingness to extend PARD's moratorium subject...

Orders

  • Set aside the Obligor Orders dated 15 August 2016 insofar as they relate to PGL and PAE
  • Declined to extend moratorium for PAF; PAF moratorium expired on 26 September 2016