High Court grants Libra six-month protection against creditors

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.

The building solutions firm's creditors include United Overseas Bank, which issued a letter of demand on Oct 8 for US$18.8 million (S$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 of Libra include trust firm Watiga Trust, which is seeking $1.77 million, and WMS Industrial Gas & Equipment, seeking RM72,940 (S$24,000).

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 is due by the end of next month.

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 law firm Shook Lin & Bok.

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

A version of this article appeared in the print edition of The Straits Times on October 18, 2019, with the headline 'High Court grants Libra six-month protection against creditors'. Print Edition | Subscribe