IHC gets up to $50m convertible loan from Oxley, files formal police report against ex-director

An artist's impression of the Royal Wharf development along the River Thames in London.
An artist's impression of the Royal Wharf development along the River Thames in London. PHOTO: OXLEY HOLDINGS

SINGAPORE - Oxley Holdings, together with its top executives and controlling shareholders - chairman and CEO Ching Chiat and deputy CEO Low See Ching - have agreed to grant a convertible loan of up to S$50 million to International Healthway Corporation (IHC), the subject recently of a fierce boardroom tussle.

Mr Ching and Mr Low were activist shareholders of IHC who were instrumental in the ouster of its previous board on Jan 23. As at Dec 5, 2016, Mr Ching holds 19.15 per cent of IHC shares while Mr Low has a 7.12 per cent interest.

Oxley said that under the term sheet signed, Mr Ching and Mr Low will grant a convertible loan facility in the aggregate amount of up to S$5 million, which will be fully repaid when the S$50 million loan is made available by Oxley, it said in a filing with the Singapore Exchange on Wednesday (Feb 8). Amounts of S$1,512,328.77 and RM335,014.84 have been already drawn under the loan facility to be granted by Mr Ching and Mr Low.

Oxley said the proceeds of the convertible loan will be used only for the following purposes:

(a) to pay the interests accrued or accruing on the loans and debts due from IHC to financial institutions, including outstanding liabilities under debt instruments issued by IHC;

(b) to pay the operating expenses of IHC, including staff salaries and professional fees;

(c) to pay such other expenses of IHC as may be approved in writing by Oxley; and

(d) to set aside and use an amount of up to S$500,000 for the purpose of investigating into the affairs and transactions of IHC and its subsidiaries.

Catalist-listed IHC, a medical property developer, has to repay a S$50 million bond due in April. In a separate filing on Wednesday (Feb 8), IHC said it has received various claims and demands by lenders and claimants including BNP Paribas Malaysia Berhad and P & O Capital Sdn Bhd.

In the filing, IHC also said that Data Management Corporation (DMC) said it filed a formal police report on Feb 6 against ousted ex-executive director Lim Beng Choo, who had left the office premises with her computer and some documents.

IHC said that Data Management Corporation (DMC) - appointed by IHC last month to protect, secure and preserve the company's records and financial information - reported that 4.5 gigabytes of emails were deleted from Ms Lim's company email account.

The shareholder revolt against IHC's old guard was triggered when its shares plunged in September 2016 after SGX reported that a few individuals trading among themselves were behind most of IHC's total traded volume since April.

IHC on Wednesday asked for a voluntary trading suspension of its shares to be lifted. Its shares last traded at 6.7 cents.