Transcu reaches agreement with SingLand unit to delay court-ordered payment

Life sciences company Transcu Group has reached an agreement with Singapore Land unit S.L. Development to temporarily put off a payment that the courts have ordered the group to make to S.L. Development.

Transcu is to pay $1.47 million to S.L. Development for rental arrears, based on a summary judgment obtained by the latter on April 26, the group said in a late-night filing to the Singapore Exchange on Monday night.

Transcu must also pay interest on the amount, at a rate of 12 per cent a year payable from January 18 until whenever the payment is made, as well as costs of the court action amounting to $33,612.

The court has also awarded damages to S.L. Development, which are to be separately assessed, Transcu said.

But the group informed shareholders on Tuesday that S.L. Development has agreed to stay the enforcement of this payment until July 17, so that both parties can "explore possible options to resolve the present dispute".

S.L. Development "has since agreed with Transcu, on the basis of goodwill and without prejudice to (its) rights whatsoever, to a standstill on the enforcement of its judgment debt, and of any further steps in the action," Transcu said in its statement.

Transcu had previously said that it was setting aside a portion of the proceeds from its bond issue for the rental repayments. The group said on Tuesday that it expects to receive US$3.5 million in proceeds from the bond sale within the next seven days.

"The company anticipates that part of the proceeds received from the bond issue to be sufficient to settle the judgment debt before the agreed standstill deadline" of July 17, Transcu said.

Transcu shares have been halted from trading since last Thursday. They resumed trading on Tuesday morning and were unchanged at 1 cent by midday.