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Ryobi Kiso Holdings slapped with more letters of demand

Business Times
11 Jul 2018
Marissa Lee

Ground engineering solutions firm Ryobi Kiso Holdings has been hit by more letters of demand from its creditors.

On Tuesday, the firm said that it had received a letter of demand from HSBC for the sum of S$789,344.15. Its subsidiary, Ryobi Kiso (S), has also received a letter of demand from Standard Chartered Bank for the sum of S$937,450.82. In addition, certain bond holders have sent the company a letter of demand alleging that an event of default has occurred, and are seeking a S$1.75 million repayment.

Last week, the group said it had received letters of demand for S$23.1 million from other financial institutions. The claims came from American Express International, Bank of China, CIMB Bank, Hong Leong Finance, KBC Bank, and Maybank. Ryobi Kiso warned then that these letters of demand might trigger cross default provisions in other banking facilities and project contracts of the group.

Separately, Ryobi Kiso (S) has also received letters of demand from various creditors and its related companies for an aggregate sum of S$6.21 million. Legal proceedings have been commenced against RKS by certain creditors for an aggregate sum of S$235,711.14.

Another subsidiary, Ryobi Development, has also received a letter of demand from its related company for the sum of S$1 million.

Ryobi Kiso appointed PricewaterhouseCoopers as its independent financial adviser to work out a restructuring proposal on June 27, and halted its share trading that same day. Trading has remained suspended.

Source: Business Times © Singapore Press Holdings Ltd. Permission required for reproduction.