Equinox Offshore Accommodation Ltd. faced with a winding-up petition for a US$600,000 claim, applies to Singapore Court for 'judicial management'.
The Board of Equinox Offshore was not able to resolve the matter relating to the winding up petition, and resolved to apply for the appointment of judicial management of the Company. A hearing for the judicial management will be fixed by the Court in due course and in the period from application until the date of the hearing there will be a moratorium in place which means that no steps can be taken up to wind up the Company.
Legal proceedings or execution of judgments against the Company cannot be commenced or continued unless there is prior leave of the Court.
If the Court grants the application for judicial management, (i) the functions of the Board is transferred to the judicial manager, (ii) a statement of affairs has to be submitted by the Board within 21 days of receiving notice of the judicial management order, and (iii) the judicial manager will present a statement of proposals to the creditors within 60 days of his appointment at a creditors’ meeting.
The judicial management order remains in force for 180 days and may be extended. If the Court does not grant the judicial management order, then the moratorium against legal proceedings being commenced or continued is lifted.