All Measure Technology (S) Pte Ltd v RHB Bank Berhad: Moratorium Application under IRDA
All Measure Technology (S) Pte Ltd applied for a moratorium under Section 64 of the Insolvency, Restructuring and Dissolution Act 2018. RHB Bank Berhad, a creditor, opposed the application. The High Court dismissed the application, finding that the applicant did not comply with procedural requirements, the proposed scheme lacked bona fides, and there was insufficient creditor support. The court also considered an application to amend the terms of the moratorium, which was allowed.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Application dismissed.
1.3 Case Type
Insolvency
1.4 Judgment Type
Ex Tempore Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Moratorium application by All Measure Technology (S) Pte Ltd under the Insolvency, Restructuring and Dissolution Act 2018 is dismissed due to non-compliance.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| All Measure Technology (S) Pte Ltd | Applicant | Corporation | Application dismissed | Lost | Tan Ming Yew Clarence |
| RHB Bank Berhad | Non-party | Corporation | Objection upheld | Won | Sim Kwan Kiat, Yeo En Fei Walter |
| Standard Chartered Bank (Singapore) Ltd | Other | Corporation | Neutral | Neutral | Ang Wei Kiat Timothy |
| Hongkong and Shanghai Banking Corporation Ltd | Other | Corporation | Neutral | Neutral | Toh Ming Wai |
| Eifel Capital Pte Ltd | Other | Corporation | Neutral | Neutral | Dhaliwal Kieran Martin Singh |
| FundTier Pte Ltd | Other | Corporation | Neutral | Neutral | Dhaliwal Kieran Martin Singh |
| Cash in Asia Pte Ltd | Other | Corporation | Neutral | Neutral | Dhaliwal Kieran Martin Singh |
| Hioki Singapore Pte Ltd | Other | Corporation | Neutral | Neutral | Ng Wei Kit Joshua |
| Y Fong Electrical Co Ltd | Other | Corporation | Neutral | Neutral | Sam Soon Chin Swee |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Goh Yihan | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Tan Ming Yew Clarence | Fervent Chambers LLC |
| Sim Kwan Kiat | Rajah & Tann Singapore LLP |
| Yeo En Fei Walter | Rajah & Tann Singapore LLP |
| Ang Wei Kiat Timothy | Rajah & Tann Singapore LLP |
| Toh Ming Wai | Harry Elias Partnership LLP |
| Dhaliwal Kieran Martin Singh | Aquinas Law Alliance LLP |
| Ng Wei Kit Joshua | Focus Law Asia LLC |
| Sam Soon Chin Swee | Unrepresented |
4. Facts
- All Measure Technology (S) Pte Ltd applied for a moratorium under s 64 of the IRDA.
- The applicant had previously applied for a moratorium within the last 12 months.
- RHB Bank Berhad opposed the application.
- The applicant's proposed scheme involved a debt-for-equity swap with Mr. Soon.
- The applicant intended to distribute surplus assets from the sale of property and inventory.
- The applicant proposed a further payment of up to S$250,000 to unsecured creditors.
- The applicant failed to accurately list its secured and unsecured creditors.
5. Formal Citations
- Re All Measure Technology (S) Pte Ltd (RHB Bank Bhd, non-party), , [2023] SGHC 148
6. Timeline
| Date | Event |
|---|---|
| Applicant applied for a six-month moratorium under s 64 of the IRDA in HC/OA 706/2022. | |
| General Division of the High Court heard OA 706 and granted a three-month moratorium. | |
| Moratorium granted in OA 706 expired. | |
| Applicant filed OA 350 seeking another moratorium. | |
| Mr Sim Hong Meng filed supporting affidavit for OA 350. | |
| Applicant issued a Proposal to creditors. | |
| Hearing for OA 350 and SUM 1114. |
7. Legal Issues
- Compliance with Procedural Requirements under IRDA
- Outcome: The court found that the applicant failed to comply with multiple procedural requirements under the IRDA.
- Category: Procedural
- Sub-Issues:
- Failure to provide accurate list of secured and unsecured creditors
- Failure to publish notice of application in a timely manner
- Good Faith in Moratorium Application
- Outcome: The court found that the application was not made in good faith due to contradictory information and lack of supporting evidence.
- Category: Substantive
- Sub-Issues:
- Contradictory particulars about restructuring plan
- Lack of evidence to support claims
- Creditor Support for Proposed Scheme
- Outcome: The court found insufficient evidence of support from the general run of creditors.
- Category: Substantive
- Sub-Issues:
- Lack of engagement with creditors
- Support driven by unique position of creditor
8. Remedies Sought
- Moratorium pursuant to s 64 of the Insolvency, Restructuring and Dissolution Act 2018
9. Cause of Actions
- Application for Moratorium
10. Practice Areas
- Insolvency
- Schemes of Arrangement
- Moratoriums
11. Industries
- Medical Equipment
- Scientific Equipment
- Precision Equipment
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Re Zipmex Co Ltd and other matters | High Court | Yes | [2022] SGHC 196 | Singapore | Cited for the principle that cases interpreting s 211B(1) of the Companies Act continue to be applicable in interpreting s 64(1) of the IRDA. |
| Re IM Skaugen SE and other matters | High Court | Yes | [2019] 3 SLR 979 | Singapore | Cited for the definition of a moratorium and the balancing exercise between the applicant's breathing space and creditors' interests. |
| Pathfinder Strategic Credit LP and another v Empire Capital Resources Pte Ltd and another appeal | Court of Appeal | Yes | [2019] 2 SLR 77 | Singapore | Cited for the principle that a moratorium application must contain sufficient particulars. |
| Re Conchubar Aromatics Ltd and other matters | High Court | Yes | [2015] SGHC 322 | Singapore | Cited for the principle that a moratorium application must be made in good faith. |
| Re Pacific Andes Resources Development Ltd and other matters | High Court | Yes | [2018] 5 SLR 125 | Singapore | Cited for the principle that lack of particularization in a proposal may show the absence of serious intent. |
| Re Aaquaverse Pte Ltd and other matters | High Court | Yes | [2023] SGHC 29 | Singapore | Cited for the principle that a moratorium application will fail if there was no reasonable prospect of the compromise or arrangement working, notwithstanding that there might be creditor support. |
13. Applicable Rules
| Rule Name |
|---|
| Insolvency, Restructuring and Dissolution (Corporate Insolvency and Restructuring) Rules 2020 |
| r 14 of the CIR Rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Insolvency, Restructuring and Dissolution Act 2018 | Singapore |
| s 64 of the Insolvency, Restructuring and Dissolution Act 2018 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Moratorium
- Scheme of Arrangement
- Insolvency
- Restructuring
- Creditor
- Debt for Equity Swap
- Bona Fides
- Procedural Requirements
- Substantive Requirements
15.2 Keywords
- moratorium
- insolvency
- restructuring
- scheme of arrangement
- IRDA
- creditors
16. Subjects
- Insolvency
- Schemes of Arrangement
- Corporate Restructuring
17. Areas of Law
- Insolvency Law
- Restructuring Law
- Corporate Law