Provisional liquidators appointed for bicycle-sharing firm oBike

oBike's sudden closure of its Singapore operations left users wondering if their deposits would be refunded.
oBike's sudden closure of its Singapore operations left users wondering if their deposits would be refunded. ST PHOTO: NG SOR LUAN

SINGAPORE - Liquidators from business advisory firm FTI Consulting have been appointed to handle the winding up of troubled bike-sharing firm oBike.

In a statement on Thursday (July 5), Joshua James Taylor and Yit Chee Wah, both from FTI Consulting, were identified as the provisional liquidators for oBike.

They will work with the Land Transport Authority as well as other vendors to ensure oBike's bicycles - numbering about 70,000 - are collected and disposed of.

oBike's sudden closure of its Singapore operations left users wondering if their deposits - amounting to $6.3 million, according to the bike-sharing firm's chairman Shi Yi - would be refunded.

Users had to make a deposit of up to $49 in order to use oBike's services.

On Wednesday, the Consumers Association of Singapore said oBike had informed it that the deposits had been used to fund the bike-sharing firm's operations.

Case said this was "unethical and unacceptable" as the deposits were not meant for such measures, and that doing so would leave oBike "financially hard-pressed" to return the deposits.

 
 

Addressing the issue of unrefunded deposits, Mr Taylor and Mr Yit said: "The provisional liquidators are aware of the media reports surrounding the refunds requested by deposit holders."

They added they will be liaising with oBike's director, as well as shareholders and founders, regarding whether the refunds can be made.