Axington now a cash company facing delisting

It has a year to acquire new business and until Aug 30 to submit trading resumption plan

Catalist-listed Axington, formerly a professional services group, has been mired in difficulty after cousins Terence (far left) and Nelson Loh bought out the firm in July last year.
Catalist-listed Axington, formerly a professional services group, has been mired in difficulty after cousins Terence (far left) and Nelson Loh bought out the firm in July last year. ST FILE PHOTO

Catalist-listed Axington, which is linked to the scandal-hit Loh cousins, is now a cash company and faces delisting if it does not acquire a new business within a year.

The company said in an exchange filing on Tuesday that it does not have any "revenue-generating business".

Axington also noted that it has until Aug 30 to submit a resumption proposal, given that the trading of its shares has been suspended since Aug 31 last year. Failure to do so would also result in delisting.

The filing said there is no assurance that the shares will resume trading or that the firm will acquire a business that meets listing criteria by the deadline.

Formerly a professional services group, Axington has been mired in difficulty after Singaporean businessmen and cousins Nelson Loh and Terence Loh bought out the firm in July last year.

The cousins made news in August with a £280 million (S$518 million) bid for Newcastle United football club. The bid was made under the Bellagraph Nova Group, which they founded with Chinese entrepreneur Evangeline Shen.

But their plan quickly unravelled when the media exposed how they had used doctored images which purported to show they were rubbing shoulders with high-profile personalities like former United States president Barack Obama.

Firms linked to the Loh cousins then came under intense scrutiny.

In August, police launched an investigation into Novena Global Healthcare Group (NGH), co-founded by the cousins and incorporated in the Cayman Islands, for allegedly using unauthorised signatures of an accounting firm on its financial statements.

With the police investigation and scandal dogging the cousins and their web of companies, they decided in October to legally separate all their business interests. Amid the mounting troubles, Mr Nelson Loh is believed to have left Singapore for China.

NGH was ordered in December to be wound up after failing to pay more than $14 million in debt to DBS Bank.

Mr Nelson Loh, who stood as guarantor for the loan, has since been declared a bankrupt.

Mr Terence Loh is facing bankruptcy proceedings in relation to $3 million owed to Maybank.

Last month, a chain of beauty clinics, Novu Aesthetics, run under an NGH subsidiary, shut all its outlets, leaving customers in the lurch.

THE BUSINESS TIMES

  • With additional information from The Straits Times
A version of this article appeared in the print edition of The Straits Times on April 08, 2021, with the headline 'Axington now a cash company facing delisting'. Subscribe