As under the CIIRP, a moratorium must be applied for, while section 64 of the IRDA provides for an interim 30-day automatic moratorium on filing of the application, within which the court hears whether to extend it for the period sufficient for the company to formally propose a scheme. In Re IM Skaugen SE, the Singapore High Court held that the test for granting an extension, is whether, on a broad assessment, there is a reasonable prospect of the intended compromise working and being acceptable to the general run of creditors. The two key factors are good faith, and sufficient evidence of creditor support. This was tested recently in Re Energe Asia Pte Ltd, where the court dismissed a moratorium application on both the grounds – bad…
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