Sen Yue and subsidiary placed under interim judicial management
Last month, DBS, its bank creditor, applied to the High Court for Sen Yue and SMIC to be placed under judicial management.
Waste-management group Sen Yue Holdings and its subsidiary, SMC Industrial (SMCI), have been placed under interim judicial management (IJM).
Mr Chee Yoh Chuang and Mr Lin Yueh Hung have been appointed as the joint and several IJMs of Sen Yue and SMCI with immediate effect, said the group in a bourse filing last Friday.
Last month, its bank creditor DBS applied to the High Court for Sen Yue and SMCI to be placed under judicial management. SMCI owes DBS around $5.9 million and has about US$9 million (S$12.1 million) outstanding, plus all accrued interest and legal costs on an indemnity basis.
In January, it received a letter of demand from DBS, which had recalled banking facilities on the grounds of default.
The lender had demanded that the sums be paid in three weeks - failing which SMCI would be liable to be compulsorily wound up.
Prior to the appointment of Mr Chee and Mr Lin as IJMs, Sen Yue had on March 17 engaged independent financial adviser Borrelli Walsh to assist in providing an independent assessment of the financial position of Sen Yue and SMCI, as well as to develop a restructuring proposal to be presented to their creditors.
"In consultation with Borrelli Walsh, the company aims to produce a restructuring proposal for discussion with the company's creditors in the next three to five weeks," it said in a separate bourse filing on Friday.
The same day, the group also said in a third statement that on March 26, SMCI had received a letter of demand from Kase Logistics (S), a logistics provider to the subsidiary.
Kase had demanded payment of the outstanding amounts of some $118,000 and US$44,200 within seven days from the date of the letter, failing which Kase would then take steps "as it may be advised" to recover the amounts and/or losses and damages, as well as all interests and costs, as it may be entitled to in law.
Sen Yue said the subject matter of the letter of demand has since been "amicably resolved" with Kase on March 31.
THE BUSINESS TIMES
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