Bankruptcy applications against Jason directors withdrawn

Lawyers for ANZ Bank said they had been instructed to withdraw both applications against Mr Sim Choon Joo and Mr Jason Sim (left).
Lawyers for ANZ Bank said they had been instructed to withdraw both applications against Mr Sim Choon Joo and Mr Jason Sim (above).ST FILE PHOTO

Two directors of flooring firm Jason Holdings had bankruptcy applications against them withdrawn yesterday.

The applications were being made against executive director Sim Choon Joo and non-executive director Jason Sim Chon Ang.

But during a court hearing, lawyers acting for ANZ Bank said they had been instructed to withdraw both applications.

In August last year, the Commercial Affairs Department was investigating Mr Jason Sim and the company's subsidiary, Jason Parquet Specialist (Singapore), regarding a possible offence under the Penal Code.

It had earlier been reported that Mr Jason Sim was interviewed by the white-collar crime investigator on Aug 1 last year and ordered to produce documents and information from 2008 to last year.

His travel documents were impounded on Aug 2 last year.

A report by audit firm EY in May last year highlighted several potential breaches of fiduciary duties in the management and administration of Jason Parquet.

EY's findings included deposits and pre-payments made using trust receipts obtained from banks without underlying goods, and an improper hire purchase transaction involving a vehicle registered to Mr Jason Sim's spouse.

Shares of Jason Holdings are still suspended.

In mid-October, the firm completed a scheme of arrangement to restructure debts owed to its unsecured creditors.

Payments to all the participating creditors were made in accordance with the scheme on Oct 17.

Jason Holdings also issued two billion new placement shares to executive director Lim Chwee Kim in December last year to raise $1 million. It used this to pay professional fees for the placement and the scheme of arrangement, and to fund working capital to facilitate its restructuring.

A version of this article appeared in the print edition of The Straits Times on December 06, 2017, with the headline 'Bankruptcy applications against Jason directors withdrawn'. Print Edition | Subscribe