The Conchubar Split—A Scheme Split Apart by the Court on Grounds of Suspected Vote Splitting

29 Sep 2017 CaseWatch

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


Click here to see Smitha’s CV.


Stephanie YEO

d +65 6517 3796