AmBank fails to bankrupt Singapore guarantor over S$287,000

SINGAPORE, Jan 29 — A Malaysian bank has failed in its attempt to bankrupt a Singaporean man who stood as loan guarantor for a S$287,000 (RM688,000) debt incurred in Malaysia 18 years ago.

AmBank (M) Berhad sought to bankrupt Raymond Yong after he failed to settle the debt for underwriting loans to two Malaysian firms.

In throwing out the bank's case, the Court of Appeal ruled that AmBank needed to have a valid judgment in its possession that could be enforced in Singapore.

Although the bank obtained a judgment in Malaysia against Yong in 1988, it applied to register the judgment for enforcement here only in 1994.

For almost 12 years after that application, AmBank took no steps to enforce the judgment. The time lapse made the judgment invalid for enforcement by the time the bank applied to make Yong a bankrupt in 2006, said the court. [read more]

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