Kitchen Culture pays up rental arrears, appoints five new directors
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The actions are part of several corporate moves by Kitchen Culture to recover from its legal and financial woes.
PHOTO: KITCHEN CULTURE
Janice Lim
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SINGAPORE - Embattled kitchen solutions provider Kitchen Culture announced via two bourse filings on Monday that it has paid up its rental arrears to property developer CDL Properties, and appointed five new directors.
The actions are part of several corporate moves to recover from its legal and financial woes.
In one of the filings, the company’s board said it had made a payment of $430,662.13 to its landlord CDL Properties, a wholly owned subsidiary of City Developments Limited.
This sum, which was paid for by partially drawing down a $4 million interest-free loan that Kitchen Culture had secured from Asian Accounts Receivable Exchange on June 26, includes an outstanding amount of $250,970 for rent owed for four months between December 2022 and March 2023, holding rent for the period from April to May in 2023, reinstatement cost, interest and legal costs.
Before it received a letter of demand in March 2023 from CDL Properties’ lawyer for allegedly owing four months of rent, thereby causing it to be evicted, the company had already been embroiled in a series of legal troubles, including dissension from its shareholders.
Kitchen Culture’s board said on Monday that CDL Properties has confirmed it received the sum and will not be making any further claim against it.
In a separate filing on the same day, the board said it has reached a settlement with CDL Properties to reinstate the office in Republic Plaza.
In addition to resolving rental payments it owes, Kitchen Culture said it is seeking legal advice over a letter of demand it received from private investor Tan Gin Tat on July 17 over a $1.5 million loan he provided to the company.
“The board’s priority has been to resolve outstanding legacy issues, including negotiating with creditors to resolve all long-overdue liabilities, engaging an external auditor to audit the FY2022 financial statements, working with the special auditor to complete the special audit, and strengthening the company’s internal controls,” read its filing.
The special audit has been completed, and the board will now engage with relevant professionals to address the issues and recommendations raised from the audit.
The board also said it has identified a suitable external auditor and will be seeking shareholders’ approval for the appointment.
It added that the company has been focused on fundraising and evaluating sustainable business opportunities to ensure its future success, and will be releasing a detailed business update as soon as possible.
Trading in the shares of Catalist-listed Kitchen Culture has been suspended since July 2021. THE BUSINESS TIMES
