When a company in restructuring is under moratorium protection, when should a “carve-out” be granted to allow an arbitration to proceed against the company? The Singapore Court of Appeal in Sapura Fabrication Sdn Bhd v Gumusut-Kakap Semi-Floating Production System (L) Limited (GAS) clarified that there is no mandatory obligation to grant such a carve-out. Rather, the court retains discretion, taking into account factors such as the nature of the claim, the timing of the application, and any potential prejudice to creditors or the restructuring process.
Our Restructuring & Insolvency and Special Situations Advisory Partner, Eden Li, contributed an analysis of this landmark decision in an article titled Singapore—carve-out from restructuring moratorium granted in favour of arbitration (Sapura Fabrication v GAS), published by LexisNexis Arbitration.
Click here to read the full article.