Clifford Chance

When will super priority be accorded for rescue financing?

30 November 2017

The Singapore High Court's first decision on the new rescue financing provisions in the Companies Act (Cap. 50) provides useful guidance on when super priority status will be granted to new money financing.

In the recent decision of the Singapore High Court in Re: Attilan Group Ltd [2017] SGHC 283 (Re Attilan), the Singapore High Court (per the Honourable Aedit Abdullah J) dismissed the applicant company's application for, among other things, super priority to be granted in respect of rescue financing sought to be obtained under the recently introduced s 211E of the Companies Act (Cap 50) (Companies Act).

While the Court declined to grant super priority on the facts of Re Attilan, the case is instructive as to the approach the Court will likely adopt in deciding whether to accord super priority status pursuant to s 211E of the Companies Act.

In this briefing we look at the decision and key issues arising from it.

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