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 Court1.2 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
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Logistics Construction Pte Ltd | Applicant | Corporation | Application Allowed | Won | Lee Lieyong Sean, Tan Yan Liang, Janice Low Hui Yi, Matthew Tan Jun Ye |
| Buildforms Construction (Pte) Ltd | Other | Corporation | Nomination Rejected | Lost | Muhammad Imran bin Abdul Rahim, Kuek Zihui, Ace Yuan Yong Long, Praveen Prathap |
| Maginet Plumbing Contractor Pte Ltd | Other | Corporation | Neutral | Neutral | Kong Hui Xin Annette |
| Oversea-Chinese Banking Corporation Limited | Other | Corporation | Neutral | Neutral | Lye Yu Min |
| Standard Chartered Bank | Other | Corporation | Neutral | Neutral | Timothy Ang Wei Kiat |
| Golden Landscape & Construction Pte Ltd | Other | Corporation | Neutral | Neutral | Tan Jia Jun James |
| MKV Engineering and Trading Services Pte Ltd | Other | Corporation | Neutral | Neutral | Lailatulqadriah binte Jaffar |
| Berkshire Hathaway Speciality Insurance | Other | Corporation | Neutral | Neutral | Jo Tay Yu Xi |
| Yi Sheng Foundation Pte Ltd | Other | Corporation | Neutral | Neutral | Stuart Ralph Lim Xiu Wu |
| Civil Aviation Authority of Singapore | Other | Government Agency | Neutral | Neutral | |
| 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 |
|---|---|
| Lee Lieyong Sean | Aquinas Law Alliance LLP |
| Tan Yan Liang | Aquinas Law Alliance LLP |
| Janice Low Hui Yi | Aquinas Law Alliance LLP |
| Matthew Tan Jun Ye | Aquinas Law Alliance 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 |
| Lye Yu Min | Rajah & Tann Singapore LLP |
| Timothy Ang Wei Kiat | Rajah & Tann Singapore LLP |
| Tan Jia Jun James | Covenant Chambers LLC |
| Lailatulqadriah binte Jaffar | Harry Elias Partnership LLP |
| Jo Tay Yu Xi | Allen & Gledhill 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 |
|---|---|
| Logistics Construction Pte Ltd incorporated in Singapore | |
| Boldtek Holdings Limited listed on the Catalist of the Singapore Exchange | |
| Boldtek Holdings Limited called for a trading halt | |
| Trading halt converted into a voluntary suspension | |
| Logistics Construction Pte Ltd filed for moratorium relief | |
| Moratorium period of three months granted | |
| Ee Chin Keong approached the Group | |
| Moratorium expired | |
| Non-binding term sheet signed with Boldtek Holdings Limited | |
| Application filed to be placed under judicial management | |
| Buildforms filed an affidavit objecting to the applicant’s nomination of Ms Tan | |
| Judgment reserved | |
| 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
16. Subjects
- Insolvency
- Restructuring
- Corporate Law
- Civil Procedure
17. Areas of Law
- Insolvency Law
- Judicial Management
- Company Law