High Court grants Libra 6-month protection against creditors

SINGAPORE - The Singapore High Court has granted distressed Libra Group a six-month reprieve against its creditors, the Catalist-listed company announced in a bourse filing on Monday (Oct 14).

Libra's creditors include UOB, which issued a letter of demand on Oct 8 for US$18.8 million ($25.7 million), and Maybank Singapore, which on Sept 3 issued a letter of demand to possess Libra's property at 34 Sungei Kadut Loop.

Other creditors include trust firm Watiga Trust, which is seeking $1.77 million, and WMS Industrial Gas & Equipment, seeking RM72,940 ($23,940).

In the next month, Libra will need to submit a report on the valuation of its significant assets to the High Court. It will also need to submit periodic financial reports on a quarterly basis, along with forecasts of profitability and cash flow from operations on a quarterly basis to the court. The first set of reports are due by end-November.

If Libra acquires or disposes of any property, or grants security over any property, it will need to provide the relevant details to the court within 14 days. The company is represented by Shook Lin & Bok.

Libra shares have been suspended from trading. They last closed at 3.5 cents on Aug 22.