Lavrentiadis v Dextra Partners: Funding Agreement for Joint Investigations in Winding Up and Bankruptcy
In the case of Lavrentiadis v Dextra Partners Pte Ltd (in liquidation), the General Division of the High Court of Singapore addressed applications by the liquidators of Dextra Partners and the trustee in bankruptcy of Bernhard Weber for authorization to enter into a funding agreement with Lavrentios Lavrentiadis. The agreement aimed to fund joint investigations into the affairs of the company and the bankrupt. Chua Lee Ming J granted the orders, finding the agreement to be in the interests of the company, the bankruptcy estate, and their creditors.
1. Case Overview
1.1 Court
General Division of the High Court of the Republic of Singapore1.2 Outcome
Orders sought by the liquidators and the trustee in bankruptcy were granted, authorizing them to enter into the Funding Agreement.
1.3 Case Type
Insolvency
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court approves funding agreement for joint investigations into Dextra Partners (in liquidation) and its bankrupt director, Bernhard Weber.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Lavrentiadis, Lavrentios | Plaintiff | Individual | Orders granted in favor | Won | |
| Dextra Partners Pte Ltd (in liquidation) | Defendant | Corporation | Funding Agreement Authorized | Neutral | Han Guangyuan, Keith, Ammani Mathivanan |
| Bernhard Wilhelm Rudolf Weber | Applicant | Individual | Funding Agreement Authorized | Neutral | Han Guangyuan, Keith, Ammani Mathivanan |
| Milky Way Limited | Other | Corporation | Watching brief | Neutral | |
| Wintrust Asia Pacific | Other | Corporation | Watching brief | Neutral |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chua Lee Ming | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Han Guangyuan | Oon & Bazul LLP |
| Keith | Oon & Bazul LLP |
| Ammani Mathivanan | Oon & Bazul LLP |
| Lim Xian Yong | WongPartnership LLP |
| Alvin | WongPartnership LLP |
| Andrea Ang Si Min | WongPartnership LLP |
4. Facts
- Dextra Partners Pte Ltd (in liquidation) was a licensed foreign law practice in Singapore.
- Bernhard Weber was the sole shareholder and director of Dextra Partners and was adjudged bankrupt.
- Lavrentios Lavrentiadis is a judgment creditor of Dextra Partners and Bernhard Weber.
- The liquidators and trustee sought authorization to enter into a funding agreement with Lavrentiadis to fund joint investigations.
- Lavrentiadis is the most significant creditor of the Company and the Bankruptcy Estate.
- The funding agreement assigns sums recovered to the funder according to a payment waterfall structure.
- The Company had been found to be the Bankrupt’s alter ego.
5. Formal Citations
- Lavrentiadis, LavrentiosvDextra Partners Pte Ltd (in liquidation) and another matter, , [2023] SGHC 131
6. Timeline
| Date | Event |
|---|---|
| High Court found Dextra Partners and Bernhard Weber jointly and severally liable to pay Lavrentios Lavrentiadis €17.2m plus interest and costs. | |
| Bankruptcy order made against Bernhard Wilhelm Rudolf Weber. | |
| Winding up order made against Dextra Partners Pte Ltd. | |
| Liquidators and Trustee considered joint investigations into the affairs of the Company and the Bankrupt. | |
| Hearing date. | |
| Judgment date. |
7. Legal Issues
- Authorization of Funding Agreement
- Outcome: The court authorized the liquidators and the trustee to enter into the funding agreement.
- Category: Substantive
- Related Cases:
- [2015] 4 SLR 597
- [1998] Ch 170
- [2019] 3 SLR 861
- [2018] 5 SLR 1337
- Conflict of Interest
- Outcome: The court granted permission under reg 37 and sanction under reg 39(1) of the IRD (CWU) Regulations.
- Category: Substantive
- Related Cases:
- [2017] NSWSC 871
- Public Policy (Maintenance and Champerty)
- Outcome: The court found no reason from a public policy perspective not to authorize the Funding Agreement.
- Category: Substantive
- Related Cases:
- [1994] 1 AC 142
- [2003] QB 381
8. Remedies Sought
- Order authorising the Company and the Liquidators to enter into the Funding Agreement
- Permission of the Court pursuant to reg 37 of the IRD (CWU) Regulations for the Funder to purchase the Company’s assets in terms of the Funding Agreement
- Sanction of the Court pursuant to reg 39(1) of the IRD (CWU) Regulations for the Funder to derive a profit in terms of the Funding Agreement
- Order authorising the Trustee to enter into the Funding Agreement
9. Cause of Actions
- Breach of Contract
- Statutory claims relating to transactions at an undervalue
- Statutory claims relating to unfair preferences
- Statutory claims relating to extortionate credit transactions
- Statutory claims relating to fraudulent trading
- Statutory claims relating to wrongful trading
- Statutory claims relating to delinquent officers
10. Practice Areas
- Commercial Litigation
- Insolvency Litigation
- Bankruptcy Litigation
11. Industries
- Legal Services
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Re Vanguard Energy Pte Ltd | High Court | Yes | [2015] 4 SLR 597 | Singapore | Cited to support the interpretation of s 144(2)(b) of the IRDA, permitting the sale of the fruits of a cause of action. |
| Re Oasis Merchandising Service Ltd | Chancery Division | No | [1998] Ch 170 | England and Wales | Cited for the distinction between pre-insolvency claims and post-insolvency claims. |
| Re Fan Kow Hin | High Court | Yes | [2019] 3 SLR 861 | Singapore | Cited regarding the power to sell or assign the fruits of statutory claims. |
| Solvadis Commodity Chemicals GmbH v Affert Resources Pte Ltd | High Court | Yes | [2018] 5 SLR 1337 | Singapore | Cited regarding the liquidator acting in good faith. |
| Giles v Thompson | House of Lords | Yes | [1994] 1 AC 142 | United Kingdom | Cited for the public policy concerns underlying the doctrine of maintenance and champerty. |
| Regina (Factortame Ltd) v Secretary of State for Transport, Local Government and the Regions (No 8) | Court of Appeal | Yes | [2003] QB 381 | England and Wales | Cited for public policy concerns about the administration of justice. |
| Re DH International Pty Ltd (in liq) (No 2) | Supreme Court of New South Wales | Yes | [2017] NSWSC 871 | Australia | Cited for the interpretation of s 551(1)(c) of the Australian Corporations Act 2001, similar to reg 37 of the IRD (CWU) Regulations. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Insolvency, Restructuring and Dissolution Act (Act 40 of 2018) | Singapore |
| s 144(2)(b) of the IRDA | Singapore |
| s 144(1)(g) of the IRDA | Singapore |
| s 145(3) of the IRDA | Singapore |
| ss 224, 225, 228, 238, 239 and 240 of the Insolvency, Restructuring and Dissolution Act 2018 | Singapore |
| s 377(1)(a) read with s 39(1) of the IRDA | Singapore |
| s 43(2) of the IRDA | Singapore |
| ss 361, 362 and 366 of the IRDA | Singapore |
| ss 378(g) and (h) of the IRDA read with s 39 of the IRDA | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Funding Agreement
- Joint Investigations
- Liquidators
- Trustee in Bankruptcy
- Bankruptcy Estate
- Committee of Inspection
- Payment Waterfall Structure
- Pre-insolvency causes of action
- Statutory claims
- Alter ego
15.2 Keywords
- Insolvency
- Winding Up
- Bankruptcy
- Funding Agreement
- Litigation Funding
- Singapore
- Court Approval
16. Subjects
- Insolvency
- Winding Up
- Bankruptcy
- Funding Agreement
- Litigation Funding
17. Areas of Law
- Insolvency Law
- Winding Up
- Bankruptcy
- Contract Law
- Civil Procedure