Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 6 · Corporate Insolvency — Receivership
86. Payments of certain debts out of property subject to floating charge in priority to claims under charge
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a person is appointed as receiver or manager of the property of a company, or of the property in Singapore of a corporation, on behalf of the holders of any debentures of the company or corporation secured by a floating charge; or
possession is taken by or on behalf of debenture holders of any such property comprised in or subject to a floating charge,then, if the company or corporation is not at the time in the course of being wound up, debts that in a winding up are preferential debts and are due by way of wages, salary, retrenchment benefit or ex gratia payment, vacation leave or superannuation or provident fund payments, and any amount that in a winding up is payable pursuant to section 203(5) or (7), must be paid, out of any such property coming to the hands of the receiver or manager or other person taking possession, in priority to any claim for principal or interest in respect of the debentures and in the same order of priority as is prescribed by section 203 in respect of those debts and amounts.
In subsection (1), “floating charge” means a charge which, as created, was a floating charge.
charge
“charge” has the meaning given by section 4(1) of the Companies Act 1967;
For the purposes of subsection (1), the references in section 203(1)(e), (g) and (h) to the commencement of the winding up are to be read as a reference to the date of the appointment of the receiver or manager or of possession being taken as mentioned in that subsection, as the case requires.
commencement of the winding up
“commencement of the winding up”, in relation to a company, means —(a)in a case where the company is being wound up under an order of the Court made at a time when the company was being wound up voluntarily — the time of the commencement of the voluntary winding up as determined in accordance with paragraph (d) or (e);(b)in a case where a company is being wound up under an order of the Court on an application made while the company was in judicial management — the time of the commencement of the judicial management as determined in accordance with this section;(c)in a case where a company is being wound up under an order of the Court in any other case — the time of the making of the winding up application;(d)in a case where the company is being wound up voluntarily and a provisional liquidator has been appointed before the resolution for voluntary winding up was passed — the time when the declaration mentioned in section 161(1) was lodged with the Registrar of Companies; or(e)in any other case where the company is being wound up voluntarily — the time of the passing of the resolution for voluntary winding up.
Any payments made under this section must be recouped as far as may be out of the property of the company or corporation available for payment of general creditors.
property
“property” includes —(a)money, goods, things in action, land and every description of property, wherever situated; and(b)obligations and every description of interest, whether present or future or vested or contingent, arising out of or incidental to property;