Proposal to restructure electric transport firm BM Mobility
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Electric transport company BM Mobility has received a proposal and a memorandum of understanding (MOU) to explore a restructuring or reorganisation of the group.
Singapore-based investment and advisory firm Silk Routes Financials is proposing to provide up to $1 million as rescue funding to fund the proposed restructuring or reorganisation.
This could involve investing in the mainboard-listed company or the acquisition or disposal of assets or undertakings.
BM Mobility said the MOU is not intended to be legally binding except for certain provisions, such as confidentiality, exclusivity, costs and governing law, according to a regulatory update yesterday.
BM Mobility and Silk Routes Financials have committed to exclusive talks for three months from Wednesday to carve out a definitive agreement.
Silk Routes Financials has separately proposed that the firm's board consider court-ordered administration or judicial management to give the company temporary respite from its creditors, BM Mobility said.
This would also give it more time to clarify its affairs and consider options, including the proposed restructuring.
BM Mobility shares have been suspended since July last year.
THE BUSINESS TIMES