INV - Judicial Management

A legal process to help a company in financial difficulty recover or better manage its assets.

A company is examined to see if it is currently insolvent or is expected to become insolvent, to determine the suitability of JM.

A company can either petition the court (via court application) or be approved by creditors (via resolution).

A formal request to a court to appoint a judicial manager for a company under IRDA Sections 90-92

A formal way where creditors of the company agree and vote to appoint a JM under IRDA Section 94.

A temporary manager appointed to oversee a company facing financial difficulties.

The majority, both in number and value of creditors, must agree for JM to be granted on a resolution.

Three purposes as mandated in IRDA s89(1). to realize assets, guide company recovery, and manage processes to help company recover.

The three main goals of a Judicial Management (JM) order under IRDA s89(1) are to help a company recover, make the best use of its assets, and create a plan for future success.

Judicial Management can begin with either a Court Application (under IRDA Sections 90-92) or a Resolution of Creditors (under IRDA Section 94).

A Judicial Management order can only be made if a majority of creditors, both in number and value, agree to it at a meeting.

The Judicial Manager appointed for a company undergoing Judicial Management must be a licensed professional.

A Judicial Manager cannot be appointed if there's evidence of fraud, deliberate mismanagement, or if the company is in bad faith regarding insolvency.

Once a Judicial Management application is filed, the company enters a kind of 'freeze' mode, and certain legal actions against the company are stopped.

The Judicial Manager appointed under Judicial Management works towards achieving the three statutory purposes outlined in IRDA s89(1): recovery, asset realization, and reorganization.

A legal process aimed at helping struggling companies recover or better manage their assets. It involves appointing independent officers to run the company and a standstill for claims and enforcement.

Any company liable to be wound up in Singapore, including foreign companies with a substantial connection to Singapore.

Winding up is a final step, dissolving the company. Judicial Management provides the opportunity for recovery or a better asset realization.

Moratorium against proceedings and enforcement, allowing the company time to formulate a proposal for creditors. Directors are replaced by independent insolvency practitioners.

A temporary pause on all legal actions and enforcement against a company, giving it time to create a plan for recovery.

JM is a court-driven process with independent managers. A scheme of arrangement is a debtor-in-possession regime.

They act as the new management, responsible for overseeing the company's recovery, realizing assets, and formulating a plan for its future.

To help companies rehabilitate, preserve value for creditors, and offer a chance for recovery instead of immediate dissolution.

Judicial management is helpful for companies whose existing management can't act effectively or lacks the trust of stakeholders.

The company must be insolvent or at risk of becoming insolvent. This is usually an easy requirement to meet.

The goals of a judicial management order are: 1) Keeping the company alive, 2) Approving a company restructuring plan, and 3) Maximizing asset value.

A person with a floating charge over all or most of the company's assets has special rights to oppose judicial management.

The court can still grant a judicial management order even if opposed, if it's considered to be in the public interest.

This was the first local case where the public interest exception for judicial management was raised.

This is another local case where the public interest exception for judicial management was used.

The court must dismiss the judicial management application if the floating charge holder opposes it and proves they will suffer significantly more than unsecured creditors if the order is granted.

Once a judicial management application is filed, certain legal actions against the company are stopped.

The Judicial Manager appointed under Judicial Management works towards achieving the three statutory purposes: company recovery, asset realization, and reorganization.

A legal freeze put in place when a Judicial Management application is filed. This stops certain legal actions against the company, giving it time to recover.

A formal vote by a company's creditors to approve the appointment of a judicial manager, acting as a substitute for a court approval.

Only licensed insolvency practitioners can be appointed as judicial managers. These are usually professional accountants, but the requirements can vary.

Once a judicial management order is granted, a more comprehensive freeze on legal actions against the company takes effect, including things like property repossession.

When a Judicial Management order is granted, any receivers or managers appointed prior to the order must leave their positions.

Any applications to liquidate the company (wind it up) that are pending before judicial management are automatically dismissed.

A plan created by judicial managers outlining their strategy for achieving the goals of judicial management, presented to creditors for review.

To assist struggling companies in recovering, making the best use of assets, and formulating a plan for future success.

The process of ending judicial management, usually when the objectives are met or deemed impossible.

Creditors or members can seek remedies against the judicial managers if they believe the company's affairs were unfairly handled.

Yes, if the goals of judicial management are achieved or deemed unattainable, the judicial management orders can be discharged.

A temporary pause on legal actions and enforcement against a company undergoing Judicial Management, giving it time to recover.

Specific exceptions to the moratorium, allowing certain legal proceedings to continue even during Judicial Management.

Judicial managers have the power to manage a company's affairs, including selling assets, granting security, and applying for super priority for rescue financing.

Judicial managers cannot deal with trust funds or discharge debts incurred before the Judicial Management order unless specific conditions are met.

A judicial management moratorium does not affect the right to set-off existing debts, because it's considered a self-help remedy rather than a legal proceeding.

A judicial management order initially lasts 180 days, but can be extended by a court or with creditor approval.

The judicial manager takes over the company's property and powers, replacing the directors.

The judicial manager controls all the company's property, including the power to sell or secure assets for funding.

It can be extended once without a court order with creditor approval; otherwise, it requires a court order.

The judicial management order only applies to the company's property, not to trust funds or debts incurred before the order.