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Libra applies for court protection; creditors seek S$9.3m, property

Libra applies for court protection; creditors seek S$9.3m, property

Source: Business Times
Article Date: 19 Sep 2019
Author: Sharanya Pillai

Catalist-listed Libra Group has applied to the High Court for a six-month debt moratorium, as it faces claims from creditors for some S$9.3 million in repayments and possession of a property at 34 Sungei Kadut Loop.

Catalist-listed Libra Group has applied to the High Court for a six-month debt moratorium, as it faces claims from creditors for some S$9.3 million in repayments and possession of a property at 34 Sungei Kadut Loop.

In a bourse filing on Tuesday, Libra said that it has applied for the debt stay under Section 211B of the Companies Act. Libra now has an interim debt moratorium of up to a month, before the Court decides on its application.

However, Libra had excluded two properties from its application for protection: the one at 34 Sungei Kadut Loop and another at 53 Loyang Drive. Subsequently, on Wednesday, Libra revealed that it has received four letters of demand from creditors collectively seeking about S$9.3 million in repayments, as well as its mortgaged property at 34 Sungei Kadut Loop.

On Sept 2, trustee firm Watiga Trust sent Libra a letter of demand seeking payment of S$1.77 million due for notes Libra had earlier issued in April, including accrued interest.

Watiga said that the notes were immediately repayable due to events of default having occurred. It had sought repayment by Sept 4, after which it would take steps to enforce repayment. Subsequently, on Sept 3, Maybank Singapore sent a letter of demand to Cyber Builders, a wholly-owned unit of Libra, seeking to possess the property at 34 Sungei Kadut Loop within a month from the letter being served.

Cyber Builders has defaulted on borrowings from Maybank that are secured by the property's mortgage, according to the letter. Maybank said that it will pursue legal action to recover the property past the deadline.

More recently, on Sept 17, UOB sent a letter of demand to Cyber Builders seeking a total repayment of about S$7.54 million due for two banking facilities. UOB gave Cyber Builders a deadline of 5pm on Friday.

UOB also sent a letter of demand for the same sum to Libra, which had provided guarantees on the banking facilities taken out by Cyber Builders. The bank said that past the deadline, it will take all necessary steps, including legal action, to recover the sum due. Trading in shares of Libra has been suspended, last closing at 3.5 Singapore cents on Aug 22.

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

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