In our 29 November 2023 update titled Obligation to Pay Cryptocurrency May Count As Debts in Determining Insolvency, Singapore High Court Rules on Loh Cheng Lee Aaron and another v Hodlnaut Pte Ltd (Zhu Juntao and others, non-parties) [2023] SGHC 323, we highlighted the decision of the General Division of the High Court of Singapore (High Court) that Hodlnaut Pte Ltd (Company) be wound up and, significantly, that its obligation to repay cryptocurrencies to its creditors constituted a “debt” within the meaning of section 125 of the Insolvency, Restructuring and Dissolution Act 2018 (IRDA).
In Aaron Loh Cheng Lee & Anor v Hodlnaut Pte. Ltd. [2024] SGHC 257, the High Court considered another novel issue arising in the Company’s liquidation: whether and when the court should authorise a liquidator to commence legal proceedings in the name and on behalf of the company, under section 144(1)(e) of the IRDA (Section 144(1)(e)).
This update takes a look at the High Court’s recent decision, which is the first to detail the factors relevant to the grant of authorisation under Section 144(1)(e).
Our Partners Lionel Leo and Eden Li, and Associate T Abirami, successfully represented the liquidators before the High Court.
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:
Lionel LEO
Partner – Restructuring & Insolvency and Special Situations Advisory
d +65 6517 3758
e lionel.leo@wongpartnership.com
Click here to view Lionel’s CV.
Eden LI
Partner – Restructuring & Insolvency and Special Situations Advisory
d +65 6517 3766
e eden.li@wongpartnership.com
Click here to view Eden’s CV.