Re Rams Challenge Shipping: Recognition of Foreign Insolvency Proceedings

The High Court of Singapore granted recognition to the Japanese corporate reorganisation proceedings of Rams Challenge Shipping Pte Ltd and 18 other companies (collectively, the "Companies"), with Hajime Shinji as the trustee. The court determined that the Companies' centre of main interests (COMI) was in Japan, despite their incorporation in Singapore, and recognised the Japanese court orders related to the reorganisation under the Insolvency, Restructuring and Dissolution Act 2018.

1. Case Overview

1.1 Court

General Division of the High Court of the Republic of Singapore

1.2 Outcome

Recognition granted for Japanese Proceedings as foreign main proceedings and for the Japanese Orders.

1.3 Case Type

Insolvency

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore court recognizes Japanese corporate reorganization of ship-owning group, finding COMI in Japan despite Singapore incorporation. Recognition extends to Japanese court orders.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Hajime ShinjiClaimantIndividualRecognition grantedWon
Rams Challenge Shipping Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
Rams Shipholding Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
United Woodchip Carrier Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
Ocean Woodchip Carrier Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
Sagittarius (PCTC) Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
Ocean Promise Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
Ocean Sentosa (PCTC) Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
United (Semi-Open) Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
Ocean (Semi-Open) Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
HK Challenger Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
United Ocean (Hull No. S-1527) Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
Globalbulk Partner Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
Ocean Eternity Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
Global Peace Shipping Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
United Fortune Carrier Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
United Ocean (Hull No. SC-195) Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
Oshima Island (Hull No. S-10687) Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
Santosh Woodchip Carrier Pte LtdRespondentCorporationRecognition of foreign proceedingsLost
Ocean Harmony Pte LtdRespondentCorporationRecognition of foreign proceedingsLost

3. Judges

Judge NameTitleDelivered Judgment
Aedit AbdullahJudge of the High CourtYes

4. Counsels

Counsel NameOrganization
Soh Yu Xian PriscillaRajah & Tann Singapore LLP
Sim Kwan KiatRajah & Tann Singapore LLP

4. Facts

  1. Hajime Shinji is the trustee of 19 companies incorporated in Singapore.
  2. The companies are part of a ship-owning and management group known as the United Ocean Group.
  3. Each company was incorporated as a single-purpose vehicle to own a vessel.
  4. Rams Corporation Kabushikai Kaisha managed the United Ocean Group.
  5. Rams Corporation negotiated charterparties with Nippon Yusen Kabushiki Kaisha and its affiliates.
  6. The companies did not have any employees.
  7. Creditors applied to Japanese Courts to place the Group into corporate reorganisation in October 2015.

5. Formal Citations

  1. Re Rams Challenge Shipping Pte Ltd and other matters, , [2022] SGHC 220

6. Timeline

DateEvent
Failure of the United Ocean Group to repay sums demanded by creditors.
Affidavit of Hajime Shinji filed.
Hearing date.
Judgment date.

7. Legal Issues

  1. Recognition of foreign insolvency proceedings
    • Outcome: The court granted recognition to the Japanese proceedings as foreign main proceedings.
    • Category: Substantive
    • Related Cases:
      • [2022] SGHC 147
  2. Determination of an entity’s centre of main interests
    • Outcome: The court found the COMI of the Companies to be in Japan, displacing the presumption in favour of Singapore.
    • Category: Substantive
  3. Scope of recognition of foreign court orders
    • Outcome: The court recognised the Japanese Orders, finding no reason to differentiate their recognition.
    • Category: Substantive
    • Related Cases:
      • [2022] SGHC 147
      • 579 BR 716

8. Remedies Sought

  1. Recognition of foreign insolvency proceedings
  2. Recognition of foreign court orders

9. Cause of Actions

  • No cause of actions

10. Practice Areas

  • Insolvency
  • Restructuring

11. Industries

  • Shipping

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Re Tantleff, AlanHigh CourtYes[2022] SGHC 147SingaporeOutlined that recognition under the Model Law goes beyond recognition of the foreign proceedings and may extend to the recognition of the foreign orders.
In re CGG SABankr SDNYYes579 BR 716United StatesCited regarding the opportunity for local creditors to participate or be heard in the process.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Section 252 of the Insolvency, Restructuring and Dissolution Act 2018Singapore
Third Schedule of the Insolvency, Restructuring and Dissolution Act 2018Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Centre of main interests
  • COMI
  • Foreign main proceedings
  • Corporate reorganisation
  • Recognition of foreign proceedings
  • Model Law
  • Japanese Proceedings
  • Japanese Orders
  • United Ocean Group
  • Single purpose vehicle

15.2 Keywords

  • Insolvency
  • Cross-border
  • Recognition
  • Singapore
  • Japan
  • Shipping
  • COMI

17. Areas of Law

Area NameRelevance Score
Recognition of foreign insolvency proceedings98
Insolvency Law95
Restructuring and Dissolution90
Bankruptcy75
Civil Procedure50
Shipping Law40

16. Subjects

  • Insolvency
  • Cross-border Insolvency
  • Restructuring