ZIPMEX COMPANY LIMITED

[2024] SGHC 6 High Court (General Division) 11 January 2024 • HC/OA 382/2022 ( HC/SUM 3868/2023 ) |HC/OA 383/2022 ( HC/SUM 3866/2023 ) |HC/OA 384/2022 ( HC/SUM 3869/2023 ) |HC/OA 385/2022 ( HC/SUM 3870/2023 ) |HC/OA 381/2022 ( HC/SUM 3867/2023 ) • 18 min read
7 cases cited

Catchwords

Insolvency Law — Schemes of arrangement — Extension of moratoria

Practice Areas

Insolvency Law

Judges (1)

Aedit Abdullah Delivered

Counsel (8)

Prolegis LLC Firm Withers KhattarWong LLP Firm Charlene Wee Swee Ting Counsel Applicant Cheang Hui Xuan Counsel Non-Party Daniel Chia Hsiung Wen Counsel Applicant Justin Yip Yung Keong Counsel Non-Party Lam Zhen Yu Counsel Non-Party Tang Yuan Jonathan Counsel Applicant

Parties (5)

PT Zipmex Exchange Indonesia Applicant Zipmex Asia Pte Ltd Applicant Zipmex Australia Pty Ltd Applicant Zipmex Company Limited Applicant Zipmex Pte Ltd Applicant

Case Significance

Re Zipmex Co Ltd and other matters [2024] SGHC 6 was a decision of the General Division of the High Court, with Aedit Abdullah J reserving judgment after the 5 January 2024 hearing and delivering it on 11 January 2024. The matters comprised five originating applications brought by the Zipmex group of companies — Zipmex Company Limited, Zipmex Pte Ltd, Zipmex Asia Pte Ltd, Zipmex Australia Pty Ltd and PT Zipmex Exchange Indonesia (Originating Applications Nos 381 to 385 of 2022, with corresponding summonses) — each under s 64 of the Insolvency, Restructuring and Dissolution Act 2018.

The judgment records that the applications sought an extension of the moratoria then operating in the applicants' favour under s 64(7) of the Insolvency, Restructuring and Dissolution Act 2018, in connection with schemes of arrangement. Prolegis LLC acted for the applicants, and Withers KhattarWong LLP appeared for a non-party.

Summary

The Zipmex group of companies, which operates a cryptocurrency exchange platform, applied to the General Division of the High Court to extend the moratoria operating in their favour under section 64 of the Insolvency, Restructuring and Dissolution Act 2018, not to pursue a restructuring but to protect a proposed sale of one or two of the applicants. The application raised the issue of whether the court has power to extend a moratorium where there is no further prospect of restructuring, a question that did not appear to have been directly addressed in local authority. Aedit Abdullah J dismissed the applications, concluding that granting such an extension would be contrary to the wording and structure of the statutory framework, the legislative purpose of the moratorium, and existing authority, so that the moratoria would not be extended.

What did the Zipmex group apply for in Re Zipmex Co Ltd [2024] SGHC 6?

The five Zipmex group companies applied for an extension of the moratoria operating in their favour under s 64(7) of the Insolvency, Restructuring and Dissolution Act 2018, in connection with schemes of arrangement. Aedit Abdullah J heard the applications on 5 January 2024.

Which companies were applicants in Re Zipmex Co Ltd and other matters?

The applicants in [2024] SGHC 6 were Zipmex Company Limited, Zipmex Pte Ltd, Zipmex Asia Pte Ltd, Zipmex Australia Pty Ltd and PT Zipmex Exchange Indonesia, across Originating Applications Nos 381 to 385 of 2022, each brought under s 64 of the Insolvency, Restructuring and Dissolution Act 2018.

Statutes Cited

Companies Act (Cap 50) Cases on this Act →
s 210(1)
Insolvency, Restructuring and Dissolution Act Cases on this Act →
Restructuring and Dissolution Act Cases on this Act →

Cases Cited (7)

SG (4)
[2019] SGHC 78 [2023] SGHC 148 [2023] SGHC 236 [2023] SGHC 29
SLR (3)
[2017] 2 SLR 850 [2019] 3 SLR 979 [2023] 4 SLR 1100

Referenced in

Statutes interpreted in this judgment

Companies Act Insolvency, Restructuring and Dissolution Act Restructuring and Dissolution Act

Judgment

Read the full judgment on the official Singapore Courts portal.

Read on eLitigation

Source: eLitigation ([2024] SGHC 6)