Yap Shiaw Wei v RHB Bank Bhd: Bankruptcy Application & Interim Order for Voluntary Arrangement

In the General Division of the High Court of Singapore, Judicial Commissioner Mohamed Faizal dismissed an appeal by Yap Shiaw Wei against the Assistant Registrar's decision to dismiss her application for an interim order under the Insolvency, Restructuring and Dissolution Act 2018. Yap sought the order to facilitate a proposed voluntary arrangement with her creditors, including RHB Bank Bhd and CIMB Bank Bhd, who had commenced bankruptcy proceedings against her. The court found Yap's proposal neither serious nor viable, citing a lack of specifics and unrealistic prospects of creditor approval. The appeal was dismissed, with costs awarded to the petitioning creditors.

1. Case Overview

1.1 Court

General Division of the High Court of the Republic of Singapore

1.2 Outcome

Appeal dismissed.

1.3 Case Type

Insolvency

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Appeal dismissed. The court found the debtor's proposal for a voluntary arrangement neither serious nor viable, denying the interim order.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Yap Shiaw WeiApplicant, AppellantIndividualAppeal dismissedLost
RHB Bank BhdRespondentCorporationFavorable rulingWon
CIMB Bank BhdRespondentCorporationFavorable rulingWon
Maybank Singapore LimitedRespondentCorporationFavorable rulingWon
Resona Merchant Bank Asia LimitedOtherCorporationNeutralNeutral

3. Judges

Judge NameTitleDelivered Judgment
Mohamed FaizalJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Dube Vinod KumarWhitefield Law Corporation
R Dilip KumarGavan Law Practice LLC
Ng Yeow KhoonShook Lin & Bok LLP
Tham Xue Yi FionaShook Lin & Bok LLP
Lim Jun Rui IvanAllen & Gledhill LLP
Celestine Luke TolentionSelvam LLC

4. Facts

  1. Yap Shiaw Wei, a former financial professional, built a business leasing residential units under the "Hovoh" brand.
  2. Yap owns eighteen residential and retail/commercial properties in Orchard Road, Singapore.
  3. Yap obtained secured and unsecured loans from various banks, with debts totaling over $50.5m secured and $26.3m unsecured.
  4. CIMB and RHB commenced bankruptcy proceedings against Yap for unpaid debts of approximately $8.4m and $25.9m respectively.
  5. Yap sought an interim order to propose a voluntary arrangement to creditors, aiming to repay debts through property sales and Hovoh revenue.
  6. The proposed voluntary arrangement involved the bulk sale of Centrepoint properties, sale of Midpoint properties, and revenue from Hovoh.

5. Formal Citations

  1. Re Yap Shiaw Wei (RHB Bank Bhd and others, non-parties), Originating Summons (Bankruptcy) No 47 of 2024 (Registrar’s Appeal No 120 of 2024), [2024] SGHC 232

6. Timeline

DateEvent
Insolvency, Restructuring and Dissolution Act 2018 enacted
CIMB Bank Bhd commenced bankruptcy proceedings against Yap Shiaw Wei
RHB Bank Bhd commenced bankruptcy proceedings against Yap Shiaw Wei
Yap Shiaw Wei filed application for an interim order
First hearing of the interim order application
Learned AR heard the interim order application
Learned AR dismissed the interim order application
Appeal hearing
Judgment reserved

7. Legal Issues

  1. Whether the draft proposal for a voluntary arrangement is 'serious and viable'
    • Outcome: The court held that the proposal was neither serious nor viable.
    • Category: Substantive
    • Sub-Issues:
      • Sufficiency of details in the proposal
      • Prospects of creditor approval
      • Feasibility of implementation

8. Remedies Sought

  1. Interim order to facilitate a voluntary arrangement

9. Cause of Actions

  • Bankruptcy

10. Practice Areas

  • Insolvency
  • Bankruptcy Law
  • Restructuring

11. Industries

  • Finance
  • Real Estate

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Re Sifan TriyonoHigh CourtYes[2021] 4 SLR 656SingaporeCited for the principle that an interim order should only be granted if the proposal is 'serious and viable'.
Re Lim Wee Beng EddieHigh CourtYes[2001] SGHC 103SingaporeCited for guidance on the criteria of appropriateness applicable to the context of interim orders.
EFG Private Bank Ltd v Babaee (Re Insolvency Act 1986)High Court of JusticeYes[2024] EWHC 444 (Ch)England and WalesCited for the principle that a proposal must have substance and be capable of serious consideration by creditors.
Shah v CooperUnknownYes[2003] BPIR 1018United KingdomCited for the principle that a serious plan must be a transparent one with full and frank disclosure of material facts.
Re Andrla, Dominic and another matterHigh CourtYes[2019] SGHC 77SingaporeCited for the principle that a proposal seeking an interim order must contain sufficient details at the outset and cannot rely on hints and innuendo.
Tucker v AtkinsHigh Court of JusticeYes[2014] EWHC 2260 (Ch)England and WalesCited for the principle that the court cannot be blind to evidence suggesting no realistic prospect of proposal approval.
Re Pacific Andes Resources Development Ltd and other mattersHigh CourtYes[2018] 5 SLR 125SingaporeCited regarding creditor sentiment in scheme of arrangement applications.
Aathar Ah Kong Andrew v CIMB Securities (Singapore) Pte Ltd and other appeals and another matterCourt of AppealYes[2019] 2 SLR 164SingaporeCited for the principle that a debtor seeking the protection of a voluntary arrangement should put all relevant facts before the creditors.
Davidson v StanleyUnknownNo[2005] BPIR 279United KingdomCited to describe the proposal as 'an essay in make believe'.
Hook v. Jewson LtdUnknownYes[1997] 1 B.C.L.C. 664United KingdomCited for the principle that interim orders should not be used to postpone bankruptcy orders without likelihood of benefit to creditors.
Hook v Jewson LtdUnknownYes[1997] BPIR 100United KingdomCited for the principle that interim orders should not be used to postpone bankruptcy orders without likelihood of benefit to creditors.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Insolvency, Restructuring and Dissolution Act 2018Singapore
s 276 of the Insolvency, Restructuring and Dissolution Act 2018Singapore
s 279 of the Insolvency, Restructuring and Dissolution Act 2018Singapore
s 282(1) of the Insolvency, Restructuring and Dissolution Act 2018Singapore
s 273(1) of the Insolvency, Restructuring and Dissolution Act 2018Singapore
s 50 read with s 277(2) of the Insolvency, Restructuring and Dissolution Act 2018Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Interim order
  • Voluntary arrangement
  • Bankruptcy application
  • Nominee
  • Creditors
  • Secured loans
  • Unsecured loans
  • Collective sale
  • Hovoh
  • Serious and viable

15.2 Keywords

  • Bankruptcy
  • Insolvency
  • Voluntary Arrangement
  • Interim Order
  • Creditors
  • Singapore
  • High Court

17. Areas of Law

Area NameRelevance Score
Insolvency Law95
Bankruptcy90
Voluntary Arrangement80
Restructuring and Dissolution70
Interim Order60

16. Subjects

  • Bankruptcy Law
  • Insolvency
  • Voluntary Arrangements