Singapore Court Provide Guidance on Tension between Matrimonial and Insolvency Regimes
In a decision of the High Court of the Republic of Singapore between Farooq Ahmad Mann (in his capacity as the private trustee in bankruptcy of Li Hua) and Xia Zheng, the Court provided a comprehensive review of the tension between matrimonial and insolvency regimes when it is alleged the bankrupt was insolvent at the time of the divorce and it is further alleged the property in the divorce was transferred at an undervalue. The decision, dated from July 15, 2024, pertained to an application by Mann for a worldwide Mareva injunction against Zheng, which such application was successful.
Farooq Mann, the private trustee said “This is an important decision on whether, as in this case, assets transferred in a divorce prior to a trustee’s appointment are subject to avoidance provisions. I am very pleased the Court found in my favour and I can continue taking steps to recover assets for the benefit of creditors of the estate.”
For more information on Farooq, visit our website or mann.com.sg.