Xpress Holdings raises money through share placement to repay creditors

SINGAPORE - Printing group Xpress Holdings has placed out new shares to raise money to repay its creditors, it said on Wednesday.

The company said creditors have started legal proceedings against it and its unit Xpress Print, for sums owing of about $2.4 million.

One creditor of Xpress Print has filed a winding-up application against Xpress Holdings, which is a guarantor of its subsidiary, in relation to rental arrears of about $400,000.

Xpress Holdings said it has obtained legal advice that the creditor has no standing to bring such an application and the company has applied for an injunction against it.

A bank has also filed a winding-up application against Xpress Print for an outstanding loan of $1.2 million, and Xpress Holdings is currently in talks with the bank to restructure the repayment terms, it added.

The company has appointed Stone Forest Corporate Advisory as a financial consultant to help in its discussions with creditors, and has also placed out 480 million new shares at 2.1 cents per share. This amounts to 16.4 per cent of the company's enlarged share capital.

The shares were placed on Tuesday to Strong Core Global and Ma Jing in equal amounts, raising net proceeds of about $9.48 million.

Xpress Holdings plans to use slightly more than half of those proceeds to repay creditors and the rest for general working capital, it said.