Re PT MNC Investama TBK  SGHC 149 – Foreign company held to have standing to apply for moratorium for a scheme of arrangement
Significance: Indonesian company successfully applied for a moratorium under section 211B of the Companies Act, now section 65 of the Insolvency, Restructuring and Dissolution Act 2018 (“IRDA“) (which came into force on 31 July 2020). The court, per Aedit Abdullah J, was satisfied that the applicant has a substantial connection to Singapore as per s 351(1)(d) and s 351(2A) of the Companies Act, now s 246(e) of the IRDA.
While the applicant did not satisfy the requirements expressly listed therein–because it is an Indonesian company with business activities, control and administration primarily in Indonesia–the court found that the Senior Secured Notes which is the subject matter of the case, are listed on the Singapore Stock Exchange. This is akin to substantial business activity not merely transient. Being subject to Singapore regulations or laws in the listing of its securities is a strong indicator of a company’s substantial connection to Singapore. Therefore the applicant has requisite standing to seek a moratorium.