Whether the CIRP is a collective proceeding
To qualify as a “foreign proceeding” under the Model Law the proceeding must, among others, be collective in nature and a judicial or administrative proceeding in a foreign state [Ascentra Holdings, Inc (in official liquidation) and others v SPGK Pte Ltd [2023] 2 SLR 421 at [29]]. The court found that the CIRP amounted to a collective proceeding. This was because the CIRP’s objectives are to provide a mechanism for corporate turnaround through (a) a structured process involving the formation of a Committee of Creditors and appointment of a resolution professional, (b) mandatory safeguards ensuring fair treatment of all stakeholders, and (c) a clear preference for reorganisation over…
