DBS Bank has applied to the High Court to have the Sen Yue Holdings waste-management group and its subsidiary placed under judicial management, the firm announced.

The subsidiary owes DBS around $5.9 million and has about US$9 million (S$11.9 million) outstanding, plus all accrued interest and legal costs on an indemnity basis.

It received a letter of demand in January from DBS, which had recalled banking facilities on the grounds of default.

The bank demanded that the sums be paid in three weeks, otherwise the unit would be liable to be compulsorily wound up.

A pre-trial conference has been fixed on March 18 for the applications for judicial management. Sen Yue said on Wednesday that it is reviewing the applications and taking legal advice.

Sen Yue and the unit face other woes: Last October, SP PowerAssets, another creditor, sent a second letter of demand for a balance of close to $7.5 million and any accrued interest for late payment.

Sen Yue and the unit are also involved in an ongoing probe by the Commercial Affairs Department. Former Sen Yue executive chairman Koh Mia Seng has been suspended from all executive functions.

The firm called for a trading halt at the end of April last year, and converted this to a trading suspension in May. Its shares last traded at 2.2 cents on April 27 last year.

THE BUSINESS TIMES