DHC Capital advised Swee Hong Ltd (SGX: QF6) on the second super priority rescue financing in Singapore; first involving super priority over assets not otherwise subject to any security interest

DHC Capital advised Swee Hong Ltd (SGX: QF6) on the super priority rescue financing pursuant to Section 211E of the Companies Act (the “Act”). The rescue financing has a Court order granting (i) security by way of a first fixed charge over unencumbered assets pursuant to Section 211E(1)(c) of the Act and (ii) in the event of a winding up, priority over all the preferential debts specified in Section 328(1)(a) to (g) of the Act and all other unsecured debts pursuant to Section 211E(1)(b) of the Act. This is the second successful application for super priority rescue financing in Singapore under Section 211E of the Act and first case involving super priority over assets not otherwise subject to any security interest under Section 211E(1)(c) of the Act. Read on for Swee Hong Ltd’s announcement on the super priority rescue financing.

David Chew, DHC Capital Partner, said “We are delighted to be involved in this ground breaking rescue financing transaction involving super priority over unencumbered assets not otherwise subject to any security interest under Section 211E(1)(c) of the Act. This transaction is an important evolution in rescue financing in Singapore and follows our successful involvement with Asiatravel.com Holdings Ltd (SGX: 5AM) on the first successful super priority rescue financing in Singapore.”

Relevant links

Please click here for our earlier thought leadership publication on rescue financing under the new laws in Singapore.

Please click here for our earlier insights on rescue financing under the new laws in Singapore.

About Swee Hong Ltd

Swee Hong Ltd is listed on the Main Board of the Singapore Exchange. Swee Hong Ltd is registered with the Building and Construction Authority (BCA) as a civil engineering contracting firm. Swee Hong Ltd applied to the Court pursuant to Section 211B of the Companies Act to seek a moratorium against enforcement actions and legal proceedings by creditors.

David Chew61-90