Singapore legislation

Clause 204

of Insolvency, Restructuring and Dissolution Bill

Clause 204

Funding by creditors

(1)

Where in any winding up —

(a)

assets have been recovered under an indemnity for costs of litigation given by certain creditors;

(b)

assets have been protected or preserved by the payment of moneys or the giving of an indemnity by certain creditors; or

(c)

expenses in relation to which a creditor has indemnified a liquidator have been recovered,the Court may make such order as it thinks just with respect to the distribution of those assets and the amount of those expenses so recovered, with a view to giving those creditors an advantage over others in consideration of the risks run by those creditors in giving those indemnities or paying those moneys.

(2)

Any creditor may apply to the Court for an order under subsection (3) prior to —

(a)

giving an indemnity for costs of litigation for recovering any assets;

(b)

paying any moneys or giving an indemnity to protect or preserve any assets; or

(c)

indemnifying a liquidator in relation to the liquidator’s expenses.

(3)

On an application by a creditor under subsection (2), the Court may, for the purpose of giving the creditor an advantage over others in consideration of the risks to be run by that creditor in giving the indemnity or payment for the purposes mentioned in that subsection, grant an order with respect to the distribution of —

(a)

the assets mentioned in subsection (2)(a) that may be successfully recovered;

(b)

the assets mentioned in subsection (2)(b) that may be successfully protected or preserved; or

(c)

the amount of expenses mentioned in subsection (2)(c) that may be successfully recovered.

Read in full context — Insolvency, Restructuring and Dissolution Bill →