When is a company placed under judicial management?

Once the company is placed into Judicial Management pursuant to Section 94, it is under the supervision of the Court and in the same manner as a Court-ordered Judicial Management to ensure that there is no abuse.

How is a judicial manager different from a scheme manager?

A Scheme manager is usually appointed to oversee the implementation of the Scheme, but he does not displace the management. By way of contrast, the judicial manager is an independent “outsider” who takes over the running of the company from the management.

How long does a judicial management order last?

A Judicial Management order is temporary in nature, generally lasting for 180 days (unless extended by the Court). 3 During this period, a moratorium is placed on proceedings against the company, 4 which gives the company breathing space to try and restructure.

When was judicial management first introduced in Singapore?

Judicial Management was introduced into Singapore’s restructuring and insolvency landscape in 1987, following the collapse of Pan Electric Industries Limited in 1985, which at that time led to an unprecedented closure of the Singapore Stock Exchange for 3 days.

What is judicial management and how it works in Singapore?

The judicial manager must apply to the Court to discharge the order for judicial management if it appears to him that the purpose (s) specified in the order has either been achieved, or is incapable of achievement. Judicial management is just one method of debt restructuring in Singapore. There are other methods available.

How does judicial management work in debt restructuring?

Judicial management is a method of debt restructuring where an independent judicial manager is appointed to manage the affairs, business and property of a company under financial distress. The company is also temporarily shielded from legal proceedings by third parties, giving it the opportunity to rehabilitate.