Re Taisoo Suk: Recognition of Korean Rehabilitation Proceedings for Hanjin Shipping
The Singapore High Court heard an ex parte application by Taisoo Suk, the foreign representative of Hanjin Shipping Co Ltd, seeking recognition of Hanjin's rehabilitation proceedings in Korea and orders to restrain and stay proceedings against Hanjin and its Singapore subsidiaries. The court granted the orders sought, recognizing the Korean rehabilitation proceedings and providing assistance, except for the arrest of the Hanjin Rome. The court considered the need for orderly resolution of claims and the potential benefit of Hanjin's rehabilitation to all parties.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Orders granted for recognition of Hanjin's rehabilitation proceedings in Korea, restraint of proceedings against Hanjin and its Singapore subsidiaries, and stay of present proceedings against them, except for the arrest of the Hanjin Rome.
1.3 Case Type
Insolvency
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court recognizes Korean rehabilitation proceedings for Hanjin Shipping, granting restraint and stay orders to assist the proceedings.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Taisoo Suk | Applicant | Individual | Application Granted | Won | |
| Hanjin Shipping Co Ltd | Other | Corporation | Orders Granted in Favour | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Aedit Abdullah | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Sim Chong | Sim Chong LLC |
| Yap Hao Jin | Sim Chong LLC |
| Tee Li Min Joan | Sim Chong LLC |
4. Facts
- Hanjin is the largest container-shipping firm in Korea and the ninth largest in the world.
- Hanjin filed an application for rehabilitation proceedings to the Korean Bankruptcy Court on 31 August 2016.
- The Korean Bankruptcy Court granted provisional orders to preserve Hanjin’s assets on the same day.
- The Seoul Central District Court commenced the rehabilitation procedure for Hanjin on 1 September 2016.
- Taisoo Suk, Hanjin’s President and Chief Executive Officer, was appointed custodian of the company.
- Hanjin made similar applications in the United Kingdom, the United States, and Japan.
- Hanjin has two subsidiaries in Singapore: Hanjin Shipping (Singapore) Pte Ltd and Hanjin Overseas Tanker Pte Ltd.
5. Formal Citations
- Re Taisoo Suk (as foreign representative of Hanjin Shipping Co Ltd), , [2016] SGHC 195
- Originating Summons, 914 of 2016, Originating Summons No 914 of 2016
- Hanjin Rome, 178 of 2016, ADM 178 of 2016
6. Timeline
| Date | Event |
|---|---|
| Hanjin filed an application for rehabilitation proceedings to the Korean Bankruptcy Court. | |
| Korean Bankruptcy Court granted provisional orders to preserve Hanjin’s assets. | |
| Seoul Central District Court commenced the rehabilitation procedure for Hanjin. | |
| Urgent ex parte application was made by Mr Taisoo Suk. | |
| The court granted the orders sought. | |
| Grounds of decision issued. | |
| Case conference scheduled. | |
| Deadline for presentation of a rehabilitation plan to interested parties. | |
| Date until which the applicant sought restraint and stay orders. |
7. Legal Issues
- Recognition of Foreign Insolvency Proceedings
- Outcome: The court recognized the Korean rehabilitation proceedings and granted restraint and stay orders in assistance of those proceedings.
- Category: Substantive
- Related Cases:
- Beluga Chartering GmhH (in liquidation) and others v Beluga Projects (Singapore) Pte Ltd (in liquidation) and another (deugro (Singapore) Pte Ltd, non-party) [2014] 2 SLR 815
- Hong Kong Institute of Education v Aoki Corporation [2004] 2 HKLRD 760
- CCIC Finance Ltd v Guangdong International Trust & Investment Corporation [2005] 2 HKC 589
- Inherent Powers of the Court
- Outcome: The court held that it had the inherent power to grant the orders sought to prevent injustice or abuse of process.
- Category: Jurisdictional
- Admiralty Jurisdiction
- Outcome: The court held that its inherent powers could be exercised even in admiralty matters to restrain arrest of ships and stay other admiralty proceedings.
- Category: Jurisdictional
8. Remedies Sought
- Recognition of Hanjin’s rehabilitation proceedings in Korea
- Restraint of all pending, contingent or fresh proceedings against Hanjin and its Singapore subsidiaries
- Stay of all present proceedings against Hanjin and its Singapore subsidiaries
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Insolvency
- Restructuring
11. Industries
- Shipping
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Cunard Steamship Co Ltd v Salen Reefer Services AB | US Court of Appeals | Yes | Cunard Steamship Co Ltd v Salen Reefer Services AB 773 F 2d 452(1985) | United States | Cited for the principle that recognition of foreign bankruptcy proceedings enables equitable, orderly and systematic distribution of the assets of a debtor. |
| CCIC Finance Ltd v Guangdong International Trust & Investment Corporation | High Court of Hong Kong | Yes | CCIC Finance Ltd v Guangdong International Trust & Investment Corporation [2005] 2 HKC 589 | Hong Kong | Cited as authority that a local court should not allow action to be taken within its jurisdiction that would interfere with a pending process of universal distribution in a foreign jurisdiction. |
| Hong Kong Institute of Education v Aoki Corporation | High Court of Hong Kong | Yes | Hong Kong Institute of Education v Aoki Corporation [2004] 2 HKLRD 760 | Hong Kong | Cited for adopting Professor Ian Fletcher's factors in determining whether a foreign restructuring process should be recognised. |
| Beluga Chartering GmhH (in liquidation) and others v Beluga Projects (Singapore) Pte Ltd (in liquidation) and another (deugro (Singapore) Pte Ltd, non-party) | Singapore Court of Appeal | Yes | Beluga Chartering GmhH (in liquidation) and others v Beluga Projects (Singapore) Pte Ltd (in liquidation) and another (deugro (Singapore) Pte Ltd, non-party) [2014] 2 SLR 815 | Singapore | Cited for the principle that the Singapore Court has the capacity to assist the rehabilitation proceedings in Korea by exercising its inherent power to stay proceedings. |
| Re TPC Korea Co Ltd | High Court of Singapore | Yes | Re TPC Korea Co Ltd [2010] 2 SLR 617 | Singapore | Discussed in relation to the interplay between admiralty jurisdiction and the court's inherent powers, but the current judgment declines to follow it in that aspect. |
| Re Opti-Medix Ltd (in liquidation)and another matter | High Court of Singapore | Yes | Re Opti-Medix Ltd (in liquidation)and another matter [2016] 4 SLR 312 | Singapore | Cited as an example of a domestic court conferring powers otherwise normally applicable in a domestic setting to assist foreign proceedings. |
| Re Conchubar Aromatics Ltd and other matters | High Court of Singapore | Yes | Re Conchubar Aromatics Ltd and other matters [2015] SGHC 322 | Singapore | Cited to highlight the differences between the Singapore scheme of arrangement and the Korean rehabilitation regime. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Supreme Court of Judicature Act (Cap 322, 2007 Rev Ed) | Singapore |
| Rules of Court (Cap 332, R 5, 2014 Rev Ed) | Singapore |
| High Court (Admiralty Jurisdiction) Act (Cap 123, 2001 Rev Ed) | Singapore |
| Companies Act (Cap 50, 2006 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Rehabilitation proceedings
- Cross-border insolvency
- Restraint order
- Stay order
- Foreign representative
- Universalist approach
- Admiralty jurisdiction
- Inherent powers of the court
- Korean Bankruptcy Court
- Commencement Order
15.2 Keywords
- Hanjin Shipping
- Insolvency
- Singapore
- Korean Rehabilitation
- Cross-border Insolvency
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Insolvency Law | 95 |
| Recognition of foreign insolvency proceedings | 95 |
| Cross-Border Insolvency | 90 |
| Admiralty and Maritime Law | 5 |
| Arbitration | 5 |
16. Subjects
- Insolvency
- Shipping
- International Law
- Civil Procedure