In a landmark judgment on 9 September 2016, the High Court of
Singapore exercised its inherent jurisdiction to grant, on an ex
parte basis, interim orders for the recognition of Hanjin's
Korean rehabilitation proceedings in Singapore.
The interim orders included a restraint of all pending,
contingent or fresh proceedings and a stay of all present
proceedings against Hanjin and its Singapore subsidiaries, and
expressly included all enforcement or execution actions against the
vessels beneficially owned or chartered by Hanjin and its
subsidiaries (excluding the arrest of the Hanjin Rome).
The interim orders will operate pending a further inter
partes hearing, where interested parties will have the
opportunity to address the Court.
The Singapore High Court also elaborated on the factors that the
Singapore Courts will need to take into account when determining
whether they should recognise and/or give effect to foreign
insolvency or rehabilitation proceedings. These factors
The connection of the company to the forum in which the
rehabilitation proceedings are taking place and to the place of
What the rehabilitation process entails, including its impact on
domestic creditors, and whether it is fair and equitable in the
Whether there are any strong countervailing reasons against
recognition of the foreign rehabilitation proceedings.
One notable feature of the Singapore High Court's orders was
its decision to extend assistance even to the point of preventing
the arrest of ships of the Hanjin fleet, not directly owned by
Hanjin or its Singapore subsidiaries (excluding existing arrest
proceedings involving the Hanjin Rome). This is an
extremely novel ruling, appearing to depart from previous
authorities, and will likely be the subject of challenge by
The next hearing is scheduled to take place in the week of 31
India is heading towards a new era of dealing with insolvencies and bankruptcies, whether corporate or individual, by promulgating a comprehensive Insolvency & Bankruptcy code at par with global standards...
As a demonstration of India's combined political will, the much awaited and debated Insolvency and Bankruptcy Code, 2016 was passed by the Upper House of the Parliament on 11 May 2016 (shortly after being passed by the Lower House on 5 May 2016).
It appears that the code should become fully operational in the coming months, thus
overhauling and improving India's business and commercial environment significantly.
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