Re Logistics Construction: Judicial Management, Competing Nominations for Interim Judicial Manager

The High Court of Singapore heard an application by Logistics Construction Pte Ltd for judicial management under the Insolvency, Restructuring and Dissolution Act 2018. While no creditor opposed the judicial management, Buildforms Construction (Pte) Ltd disputed the applicant's nominee for judicial manager, proposing their own. The court allowed the application and appointed Ms. Ellyn Tan Huixian as the judicial manager, finding that the company was unable to pay its debts and that judicial management would likely achieve the purposes outlined in the IRDA.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

The applicant's application to be placed under judicial management is allowed, and Ms. Ellyn Tan Huixian is appointed as the judicial manager.

1.3 Case Type

Insolvency

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Singapore court considers competing nominations for interim judicial manager in Logistics Construction Pte Ltd's judicial management application.

1.7 Decision Date

3 March 2024

2. Parties and Outcomes

Party Name	Role	Type	Outcome	Outcome Type	Counsels
Logistics Construction Pte Ltd	Applicant	Corporation	Application Allowed	Won	Matthew Tan Jun Ye of Aquinas Law Alliance LLP Lee Lieyong Sean of Aquinas Law Alliance LLP Tan Yan Liang of Aquinas Law Alliance LLP Janice Low Hui Yi of Aquinas Law Alliance LLP
Oversea-Chinese Banking Corporation Limited	Other	Corporation	Neutral	Neutral	Lye Yu Min of Rajah & Tann Singapore LLP
Berkshire Hathaway Speciality Insurance	Other	Corporation	Neutral	Neutral	Jo Tay Yu Xi of Allen & Gledhill LLP
Civil Aviation Authority of Singapore	Other	Government Agency	Neutral	Neutral
Buildforms Construction (Pte) Ltd	Other	Corporation	Nomination Rejected	Lost	Muhammad Imran Bin Abdul Rahim of Eldan Law LLP Kuek Zihui of Eldan Law LLP Ace Yuan Yong Long of Eldan Law LLP Praveen Prathap of Eldan Law LLP
Maginet Plumbing Contractor Pte Ltd	Other	Corporation	Neutral	Neutral	Kong Hui Xin Annette of Salem Ibrahim LLC
Standard Chartered Bank	Other	Corporation	Neutral	Neutral	Timothy Ang Wei Kiat of Rajah & Tann Singapore LLP
Golden Landscape & Construction Pte Ltd	Other	Corporation	Neutral	Neutral	Tan Jia Jun James of Covenant Chambers LLC
MKV Engineering and Trading Services Pte Ltd	Other	Corporation	Neutral	Neutral	Lailatulqadriah binte Jaffar of Harry Elias Partnership LLP
Yi Sheng Foundation Pte Ltd	Other	Corporation	Neutral	Neutral	Stuart Ralph Lim Xiu Wu of Dentons Rodyk & Davidson LLP
Reclaims Enterprise Pte Ltd	Other	Corporation	Neutral	Neutral
Archilite Engineering Pte Ltd	Other	Corporation	Neutral	Neutral
MMM Contract & Services Pte Ltd	Other	Corporation	Neutral	Neutral
Samwoh Premix Pte Ltd	Other	Corporation	Neutral	Neutral

3. Judges

Judge Name	Title	Delivered Judgment
Goh Yihan	Judge	Yes

4. Counsels

Counsel Name	Organization
Matthew Tan Jun Ye	Aquinas Law Alliance LLP
Lee Lieyong Sean	Aquinas Law Alliance LLP
Tan Yan Liang	Aquinas Law Alliance LLP
Janice Low Hui Yi	Aquinas Law Alliance LLP
Lye Yu Min	Rajah & Tann Singapore LLP
Jo Tay Yu Xi	Allen & Gledhill LLP
Muhammad Imran Bin Abdul Rahim	Eldan Law LLP
Kuek Zihui	Eldan Law LLP
Ace Yuan Yong Long	Eldan Law LLP
Praveen Prathap	Eldan Law LLP
Kong Hui Xin Annette	Salem Ibrahim LLC
Timothy Ang Wei Kiat	Rajah & Tann Singapore LLP
Tan Jia Jun James	Covenant Chambers LLC
Lailatulqadriah binte Jaffar	Harry Elias Partnership LLP
Stuart Ralph Lim Xiu Wu	Dentons Rodyk & Davidson LLP

4. Facts

Logistics Construction Pte Ltd applied for judicial management.
Buildforms Construction (Pte) Ltd opposed the applicant's nomination of judicial manager.
The applicant's current liabilities exceeded its current assets.
An Investor Group intended to purchase the applicant’s entire share capital.
The Investor Group intends to restructure the applicant.
The applicant's financial woes became publicly known.
The applicant was not awarded any new construction projects of significant value.

5. Formal Citations

Re Logistics Construction Pte Ltd, Originating Application No 1164 of 2023, [2024] SGHC 58

6. Timeline

Date	Event
1992-04-25	Logistics Construction Pte Ltd incorporated in Singapore
2013-01-12	Boldtek Holdings Limited listed on the Catalist of the Singapore Exchange
2023-01-12	Boldtek Holdings Limited called for a trading halt
2023-01-16	Trading halt converted into a voluntary suspension
2023-07-21	Logistics Construction Pte Ltd filed for moratorium relief
2023-08-14	Moratorium period of three months granted
2023-10-01	Ee Chin Keong approached the Group
2023-11-14	Moratorium expired
2023-11-16	Non-binding term sheet signed with Boldtek Holdings Limited
2023-11-17	Application filed to be placed under judicial management
2023-12-14	Buildforms filed an affidavit objecting to the applicant’s nomination of Ms Tan
2024-02-06	Judgment reserved
2024-03-04	Judgment delivered

7. Legal Issues

Judicial Management Order
- Outcome: The court was satisfied that the company was unable to pay its debts and that the making of the order would be likely to achieve one or more of the purposes of judicial management mentioned in s 89(1).
- Category: Substantive
- Sub-Issues:
  - Inability to pay debts
  - Likelihood of achieving purposes of judicial management
- Related Cases:
  - [2023] SGHC 253
  - [2003] 2 SLR(R) 320
Appointment of Judicial Manager
- Outcome: The court found that Buildforms did not have standing to oppose the applicant's nomination and that Ms. Tan was a suitable judicial manager.
- Category: Procedural
- Sub-Issues:
  - Standing of creditors to oppose nomination
  - Suitability of nominee
- Related Cases:
  - [2023] 4 SLR 862
  - [2023] SGCA 40
Definition of Creditor
- Outcome: The court determined that Buildforms was a contingent creditor but not a creditor for the purposes of opposing the judicial manager nomination.
- Category: Substantive
- Sub-Issues:
  - Contingent creditor
  - Disputed liability
- Related Cases:
  - [2023] SGCA 40
  - (1969) 120 CLR 455

8. Remedies Sought

Judicial Management Order

9. Cause of Actions

No cause of actions

10. Practice Areas

Insolvency
Restructuring
Corporate Law

11. Industries

Construction

12. Cited Cases

Case Name	Court	Affirmed	Citation	Jurisdiction	Significance
Re Logistics Construction Pte Ltd	High Court	Yes	[2023] SGHC 231	Singapore	Cited for granting a shorter moratorium period to the applicant.
Sun Electric Power Pte Ltd v RCMA Asia Pte Ltd (formerly known as Tong Teik Pte Ltd)	Court of Appeal	Yes	[2021] 2 SLR 478	Singapore	Cited for the cashflow test to determine insolvency.
Re X Diamond Capital Pte Ltd (Metech International Ltd, non-party)	High Court	Yes	[2023] SGHC 253	Singapore	Cited for the 'real prospect' test in s 91(1)(b) of the IRDA.
Deutsche Bank AG and another v Asia Pulp & Paper Co Ltd	Court of Appeal	Yes	[2003] 2 SLR(R) 320	Singapore	Cited for the 'real prospect' test in s 91(1)(b) of the IRDA.
Point72 Ventures Investments LLC v FinLync Pte Ltd (Klein, Peter Selig and another, non-parties)	High Court	Yes	[2023] SGHC 122	Singapore	Cited for the presence of creditor support as a factor in granting a judicial management order.
Re Genesis Technologies International (S) Pte Ltd	High Court	Yes	[1994] 2 SLR(R) 298	Singapore	Cited for the court's consideration of creditors' wishes.
Re Hodlnaut Pte Ltd	High Court	Yes	[2023] 4 SLR 862	Singapore	Cited for factors the court may consider when appointing a judicial manager.
Founder Group (Hong Kong) Ltd (in liquidation) v Singapore JHC Co Pte Ltd	Court of Appeal	Yes	[2023] SGCA 40	Singapore	Cited for the narrower meaning of 'creditor' and 'contingent creditor' in relation to s 124(1)(c) of the IRDA.
Community Development Pty Ltd v Engwirda Construction Co	High Court of Australia	Yes	(1969) 120 CLR 455	Australia	Cited for the definition of contingent liability.
Metalform Asia Pte Ltd v Holland Leedon Pte Ltd	Court of Appeal	Yes	[2007] 2 SLR(R) 268	Singapore	Cited regarding restraining a creditor from presenting a winding-up petition.
The “Bunga Melati 5”	Court of Appeal	Yes	[2012] 4 SLR 546	Singapore	Cited for the standard of proof in hearings relying on affidavit evidence.
SAAG Oilfield Engineering (S) Pte Ltd (formerly known as Derrick Services Singapore Pte Ltd) v Shaik Abu Bakar bin Abdul Sukol and another and another appeal	Court of Appeal	Yes	[2012] 2 SLR 189	Singapore	Cited regarding the meaning of 'creditor' in a scheme of arrangement.
Re Halley’s Departmental Store Pte Ltd	High Court	Yes	[1996] 1 SLR(R) 81	Singapore	Cited for the judicial manager as an independent officer of the court.
RCMA Asia Pte Ltd v Sun Electric Power Pte Ltd (Energy Market Authority of Singapore, non-party)	High Court	Yes	[2020] SGHC 205	Singapore	Cited for a wider meaning of 'creditor'.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute Name	Jurisdiction
Insolvency, Restructuring and Dissolution Act 2018	Singapore
Companies Act 1967	Singapore

15. Key Terms and Keywords

15.1 Key Terms

Judicial Management
Insolvency
Creditor
Contingent Creditor
Moratorium
Restructuring
Nominee
Majority Requirement

15.2 Keywords

Judicial Management
Insolvency
Restructuring
Singapore
Construction
Creditors
IRDA
Companies Act

17. Areas of Law

Area Name	Relevance Score
Insolvency Law	95
Judicial Management	90
Restructuring and Dissolution	80
Company Law	70
Receivership	40
Liquidation	30
Estate Administration	20

16. Subjects

Insolvency
Restructuring
Corporate Law
Civil Procedure