Knowledge & Insights

Following the seminal case of The Royal Bank of Scotland NV (formerly known as ABN Amro Bank NV) and others v TT International Ltd and another appeal [2012] 2 SLR 213 (“TT International”) concerning the sanction of schemes of arrangements, the Court of Appeal has, in the case of SK Engineering & Construction Co Ltd v Conchubar Aromatics Ltd and another appeal [2017] SGCA 51 (“Conchubar”), not only clarified the guiding factors that could go towards establishing the existence of a relationship between a creditor and a scheme company but has suggested that the position in TT International of applying a partial discount to related creditor votes should be departed from in favour of a more certain approach of discounting such votes in full.

Further, the Court of Appeal held that the existence of vote-splitting in relation to creditors’ schemes of arrangements was a relevant concern in a judge’s exercise of discretion in sanctioning a scheme and could potentially result in the non-sanction of a scheme even if the statutory numerical requirements have been met.

If you have any queries or would like to know more about how these changes may impact you, please contact:

Smitha MENON

Partner, Restructuring & Insolvency Practice

d +65 6416 8129

e smitha.menon@wongpartnership.com

Click here to see Smitha’s CV.

Stephanie YEO

d +65 6517 3796

e stephanie.yeo@wongpartnership.com