The Singapore International Commercial Court (SICC) issued its first cross-border restructuring decision in Re PT Garuda Indonesia (Persero) Tbk and another matter [2024] SGHC(I) 1 (Re PT Garuda). This decision marks the dawn of cross-border restructuring matters heard in the SICC – a development which we had foreshadowed and discussed in a previous article (Cross-Border Restructuring and Insolvency in the SICC).
In Re PT Garuda, the SICC, in recognising Garuda Indonesia’s PKPU (i.e., “suspension of payments”) proceeding and composition plan under the UNCITRAL Model Law on Cross-Border Insolvency (Model Law), highlighted that:
- The threshold to establish the public policy exception is high and will succeed only if the recognition and grant of relief is contrary to the “fundamental public policy of Singapore”; and
- Attempts to challenge the merits of the foreign jurisdiction’s insolvency regime by juxtaposing it against Singapore’s are impermissible and contrary to the spirit of modified universalism as envisaged by the Model Law.
This update examines the SICC’s decision in Re PT Garuda.
If you would like information and/or assistance on the above or any other area of law, you may wish to contact the Partner at WongPartnership whom you normally work with or any of the following Partners:
Adnaan NOOR
Partner – Indonesia Practice
Partner – Restructuring & Insolvency
Partner – Special Situations Advisory
d +65 6416 2477
e adnaan.noor@wongpartnership.com
Click here to view Adnaan’s CV.
Muhammed Ismail NOORDIN
Partner – Restructuring & Insolvency
Partner – Special Situations Advisory
d +65 6517 3760
e muhammedismail.konoordin@wongpartnership.com
Click here to view Ismail’s CV.