The UNCITRAL Model Law on Cross-Border Insolvency (“Model Law“) aims to facilitate the conduct of cross-border insolvencies. The case of United Securities Sdn Bhd (in receivership and liquidation) and another v United Overseas Bank Ltd [2021] SGCA 78 was the first time the Singapore Court of Appeal considered the recognition of foreign insolvency proceedings under the Model Law and the effects of such recognition.
Notwithstanding the commencement of insolvency proceedings in Malaysia, the Court of Appeal declined to grant a stay of Singapore proceedings, allowing the Respondent bank to continue with its court application for declarations relating to its security interests. The Respondent was successfully represented by Lee Eng Beng S.C. and Torsten Cheong of Rajah & Tann Singapore LLP.
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