Serial System associate Tong Chiang Group ordered to be wound up

Serial System's executive chairman and group chief executive officer Derek Goh Bak Heng owns 2.5 per cent of Tong Chiang.
Serial System's executive chairman and group chief executive officer Derek Goh Bak Heng owns 2.5 per cent of Tong Chiang.PHOTO: LIANHE ZAOBAO

SINGAPORE - The High Court has ordered the winding up of Serial System's 21 per cent-owned associated company, Tong Chiang Group, on March 1, 2019.

Serial System's executive chairman and group chief executive officer Derek Goh Bak Heng owns 2.5 per cent of Tong Chiang.

Maybank Singapore, a creditor of Tong Chiang, filed the application on Nov 30, 2018. RSM Corporate Advisory's Chee Yoh Chuang and Lin Yueh Hung have been appointed joint and several liquidators.

The electronic components distributor said in its bourse filing that the winding up of Tong Chiang was not expected to have any financial impact on the net tangible assets per share and earnings per share of the group for the current financial year ending Dec 31 2019, as full impairment had been made for the group's investment in Tong Chiang for fiscal 2018.

On Aug 20, 2018, Tong Chiang, along with other Serial System associated companies, Edith-United International, Eunice Food Catering and Imperial Kitchen Catering, had filed applications to be placed under judicial management. Serial System owns a 21 per cent stake in each company.

As at Sept 30, 2018, a full impairment loss of US$5.4 million had been made for the group's 21 per cent equity stake in each company.

Serial System shares were flat at $0.088 as at 2.14pm on Friday.