Under the Insolvency, Restructuring and Dissolution Act 2018, the Court may order the winding up of a company on a number of grounds, including where the company is unable to pay its debts.
In Energy Resource Investment Pte Ltd v International Golf Resorts Pte Ltd [2022] SGHC 134, a creditor sought to wind up the Defendant company on the ground that it could not repay certain loans owed. Upon determining the insolvency, the Singapore High Court found that the debts alleged to be owed were in fact disputed, as there was a triable issue in respect of two of the three loans from the creditor. The Court further found that, for the remaining loan, it had not been shown that the company could not repay the loan. As such, the application was dismissed.
Successfully represented by Partner Vikram Nair, Senior Associate Xian Fong Foo, and Associates Glenna Liew, Mazie Tan and Ashwin Menon, the Court held in favour of the Defendant company and declined the winding up order.
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