In case some of you are not aware, please check here for latest update: http://www.case.org.sg/news.html

In short, SS is in liquidation stage, meaning "no legal action can be taken without the approval of the Court "  =_=

I'm rather in an awakward situation. I previously signed up with True Spa in 2008. After the "takeover" of TS, I was counselled to convert to SS so that I can utilise my remaining balance package. Now with the winding up of SS, I cant lodge a case to SCT against SS. On the other hand, I dont know whether I can lodge a case to TS, since I have done a conversion to SS.

My own stupidity, I did not ask for a copy of the so-called conversion agreement to SS. Therefore, I am now left with a fading contract with TS and no other evidence to support my claims. Worse, I'm still servicing my installment plans even though no services can be rendered.

Any similar cases out there? =(

This is also similiar to the case of Wellness Village in 2009.

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1017622/1/.html

A history repeating itself or a lesson not learnt at all? Why is this being allowed to happen again?

The loser is always the customers. The banks are protected, since the liability still lies with the credit card holders aka the customers. At most, the banks can waive off on the basis of goodwill, but it will never be an obligation since the banks are running a business as well.

The spa owners can go "scot-free" without even having to apologise publicly since the liability lies with the entity, aka the company. Once the company is liquidated, customers as unsecured creditors can no longer commence legal actions against the company,until the court permits. The liquidators will come into the picture, sell of whatsoever assets the company has and the proceeds will be distributed out in order of priority:

1. The fees and charges of the liquidation/bankruptcy.

2. Debts due to preferential creditors,. These debts are set out in the Insolvency Act 1986 and include wages owed in the four months before the date of the insolvency order and contributions to occupational pension schemes.
3. In company cases, any creditor holding a floating charge over an asset, such as a debenture.
4. All unsecured creditors.
5. Any interest payable on debts.
6. In company cases, the shareholders.

The order of priority is quoted from online.  Based on my memory of my Business Law course in uni, govt bodies such as IRAS is also one of the top few and unsecured creditors like customers and employees are almost the last of the order..

All and all, chances of me getting back my package is dim... Super bad mood. Whoever gonna ask me to sign up for any package in future, I sure bite! GRRRR... GRRR...