The Lawsuit for Hidden Assets in Singapore

In a notable legal development, Greek entrepreneur Lavrentios Lavrentiadis initiated legal proceedings against Dextra Partners Pte Ltd, a Singapore-based foreign law practice, and its sole director, Mr. Bernhard Wilhelm Rudolf Weber. The case, adjudicated in the Singapore High Court, centered on allegations of breach of fiduciary duties and trust.

In 2020, the Singapore High Court ruled in favor of Mr. Lavrentiadis, finding Dextra Partners and Mr. Weber jointly and severally liable for €17.2 million, plus additional sums and costs. The court determined that the defendants had breached their fiduciary duties, leading to unauthorized payments and financial mismanagement.

Following the judgment, Dextra Partners was ordered to be wound up, and Mr. Weber was declared corrupt and bankrupt. Given the intertwined financial affairs of the company and its director, the appointed liquidators and the trustee in bankruptcy proposed a joint funding agreement to facilitate comprehensive investigations into potential claims against other parties. This agreement aimed to maximize recoveries for the benefit of all stakeholders involved.

The court approved the funding agreement, recognizing its necessity for efficient asset recovery. The agreement outlined a structured payment plan, ensuring that recovered sums would first cover investigation costs, then reimburse the funder up to twice the funded amount, with any surplus distributed proportionally between the company and the bankruptcy estate.

This case underscores the complexities of cross-border litigation and the importance of robust legal frameworks in addressing breaches of fiduciary duty. It also highlights the role of funding agreements in insolvency scenarios, facilitating the pursuit of claims that might otherwise remain unaddressed due to financial constraints.