Singapore Court Recognises Foreign Bankruptcy Order for the First Time

This case involved a Japanese company director named Masahiko Nishiyama who had been sued and made bankrupt in Japan to the tune of 43 billion yen (S$570 million). In order to evade the judgment and enforcement proceedings, he had dissipated his assets on a massive worldwide scale. This included stashing approximately US$90 million (S$124 million) in three banks in Singapore: Standard Chartered Bank, Bank Julius Baer and Credit Suisse AG.

Nishiyama was sent to prison in Japan for his criminal misdeeds, but this still left his trustee in bankruptcy with having to pursue his assets. We were appointed to assist with this process.

The first step was to persuade the Singapore High Court to recognise the bankruptcy order that had been made in the Kyoto District Court in Japan. Before this, there were no known cases where the Singapore courts have recognised a foreign bankruptcy order. We therefore had to make novel arguments based on first principles and draw analogies to insolvency proceedings involving the winding up of companies.

We also had to convince the Court that there were indeed assets in Singapore worth pursuing. This was a complicated task as the majority of the monies stashed by Nishiyama in Singapore was not held through accounts in his own name, but through a complicated web of corporate entities incorporated in offshore jurisdictions such as Samoa and the British Virgin Islands.

Ultimately, the Singapore court agreed with our arguments and granted recognition of the Japanese bankruptcy order, thus allowing the Japanese trustee in bankruptcy to proceed to call in US$90 million worth of assets.

oangledes213

Recent Posts

Road Traffic Act: Updated Framework for Repeat Drink Driving Offences

Introduction In December 2023, a significant judgment was handed down in the case of Lee…

8 months ago

Eugene Thuraisingam LLP X Founders Doc: What is defamation from the case of Rachel Wong v Olivia Wu?

In a video collaboration between Eugene Thuraisingam LLP and Founders Doc, our Suang Wijaya and…

9 months ago

Eugene Thuraisingam as a Guest on the LegalCentred podcast

In February, our partner, Eugene Thuraisingam was invited as a guest on the flagship podcast…

9 months ago

Eugene Thuraisingam LLP Contributes to Singapore Chapter of Lexology Panoramic’s Anti-Bribery & Corruption Guide 2024

We are pleased to announce that Eugene Thuraisingam, Johannes Hadi and Ng Yuan Siang have…

9 months ago

Sentencing Mentally Disordered Offenders: Comparing the River Valley High and Upper Bukit Timah Killings

Introduction Under Section 304(a) of the Penal Code, which punishes a person who commits culpable…

10 months ago

The International Arbitration Review: Singapore

This article by our Hamza Malik originally appeared on the International Arbitration Review. Introduction Singapore…

1 year ago