Re Conchubar Aromatics Ltd: Interim Stay of Proceedings under Section 210(10) of the Companies Act

The High Court of Singapore, in the case of Re Conchubar Aromatics Ltd, granted the applications of Conchubar Aromatics Ltd, UVM Investment Corporation, and Shefford Investments Holding Ltd for an interim stay of proceedings under section 210(10) of the Companies Act. The court, presided over by Aedit Abdullah JC, allowed the restraint order for 10 weeks to allow the companies to finalize discussions for a restructuring proposal. The court found that the proposal was sufficiently detailed and made bona fide, and that the companies had sufficient nexus to Singapore.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Restraint order granted for 10 weeks, unless discharged earlier.

1.3 Case Type

Insolvency

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court granted an interim stay of proceedings to Conchubar Aromatics Ltd under s 210(10) of the Companies Act, pending a creditors' meeting.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Conchubar Aromatics LtdApplicantCorporationInterim Stay of Proceedings GrantedWon
UVM Investment CorporationApplicantCorporationInterim Stay of Proceedings GrantedWon
Shefford Investments Holding LtdApplicantCorporationInterim Stay of Proceedings GrantedWon

3. Judges

Judge NameTitleDelivered Judgment
Aedit AbdullahJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Danny QuahProvidence Law Asia LLC
Vergis AbrahamProvidence Law Asia LLC

4. Facts

  1. Three applicant companies sought an interim stay of proceedings.
  2. Applicants were shareholders in Jurong Aromatics Corporation Pte Ltd.
  3. JAC was put into receivership in September 2015.
  4. Applicants hoped a restructuring proposal would rehabilitate their position.
  5. A moratorium was necessary to protect the Applicants’ ability to continue their efforts at restructuring.
  6. A creditor, SK Engineering & Construction Co, Ltd appeared, but did not contest the application for the moratorium at this time.

5. Formal Citations

  1. Re Conchubar Aromatics Ltd, Originating Summons Nos 1064, 1065 and 1066 of 2015, [2015] SGHC 322

6. Timeline

DateEvent
Jurong Aromatics Corporation Pte Ltd put into receivership.
Restraint order granted for 10 weeks.

7. Legal Issues

  1. Interim Stay of Proceedings
    • Outcome: The court granted the interim stay of proceedings.
    • Category: Procedural
    • Related Cases:
      • [1990] 2 MLJ 180
      • [2010] 2 SLR 617
  2. Bona Fides of Restructuring Proposal
    • Outcome: The court found the restructuring proposal was made bona fide.
    • Category: Substantive
    • Related Cases:
      • [1990] 2 MLJ 180
  3. Applicability of Section 210(10) to Foreign Companies
    • Outcome: The court held that section 210(10) applies to foreign companies with sufficient nexus to Singapore.
    • Category: Jurisdictional
    • Related Cases:
      • [2010] 2 SLR 617

8. Remedies Sought

  1. Interim Stay of Proceedings

9. Cause of Actions

  • No cause of actions

10. Practice Areas

  • Insolvency
  • Corporate Restructuring

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Re Kuala Lumpur Industries BhdHigh CourtYes[1990] 2 MLJ 180MalaysiaCited as authority that a restraint order under s 210(10) of the Companies Act can be granted independent of the calling of a meeting under s 210(1).
Re TPC Korea Co LtdHigh CourtYes[2010] 2 SLR 617SingaporeCited for the proposition that the fact that the applicants were foreign companies would not obstruct the granting of a moratorium, as there was sufficient nexus to Singapore.
Re GAE Pty LtdN/AYes[1962] VR 252AustraliaCited for the principle that the particulars of the scheme gave more than a general layout, so that the court would be able to determine if the scheme was feasible, and that the intention to invoke the section was bona fide.
Re Reid Murray Acceptance LtdN/ANo[1964] VR 82AustraliaCited regarding whether an application should be made ex parte or inter partes.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Companies Act (Cap 50, 2006 Rev Ed) s 210(10)Singapore
Companies Act (Cap 50, 2006 Rev Ed) s 210(1)Singapore
Companies Act s 210(11)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Interim Stay of Proceedings
  • Restraint Order
  • Section 210(10)
  • Companies Act
  • Restructuring Proposal
  • Creditors' Meeting
  • Bona Fides
  • Winding Up

15.2 Keywords

  • Insolvency
  • Companies Act
  • Restructuring
  • Moratorium
  • Stay of Proceedings

17. Areas of Law

Area NameRelevance Score
Moratorium90
Insolvency Law80
Company Law75
Restraint Order65
Bankruptcy60
Injunctions50
Civil Procedure30

16. Subjects

  • Insolvency
  • Corporate Law
  • Civil Procedure