S’pore car-sharing service Shariot and related firms potentially restructuring amid $180m debt

SINGAPORE – Car-sharing company Shariot is among nine related companies requesting its creditors to hold off on recovering debts while they explore restructuring options.

The nine companies – which also include large car leasing firm Autobahn Rent A Car – deal in car sales, repair, leasing and financing. They are said to be interlinked in terms of their financial, operational and fleet-related arrangements and have the same shareholders.

Speaking to The Straits Times on Nov 26, Mr Roy Tan, the majority shareholder of the companies, said the firms have about $180 million in debt, the bulk of which comes from Autobahn Rent A Car.

Autobahn Rent A Car has grown its fleet from 500 vehicles to 1,700 over the past few years after the Covid-19 pandemic. These are mainly rented out for ride-hailing services.

A letter dated Nov 25 from the companies’ appointed law firm Fervent Chambers said the restructuring options being assessed include getting temporary protection from creditors through a court order, applying for a scheme of arrangement under the Insolvency, Restructuring and Dissolution Act 2018 and “other restructuring pathways as may be appropriate in the circumstances”.

A scheme of arrangement is a court-supervised process that allows a company in financial distress to negotiate with creditors to restructure its debts and continue operating.

The law firm has asked that creditors hold off on any enforcement or debt recovery while it works with the companies to “formulate a coordinated proposal”.

Mr Tan said Autobahn’s earnings have taken a hit as operating costs have risen while rental fees have fallen over the past 12 to 18 months.

The company’s rental contracts are not affected by the request to creditors at this stage, so hirers can continue to use the cars, he added.

He declined to disclose how many creditors are owed money when asked, but ST has learnt that major motor dealers are among those owed payment for cars purchased by Autobahn.

Responding to queries, Toyota distributor Borneo Motors Singapore said it does not disclose specific financial matters, but added that the company was “aware of the recent developments concerning Autobahn Rent A Car”.

“Borneo Motors Singapore will continue to engage constructively with our partners to manage the situation responsibly and ensure operational continuity where required,” its spokesperson said.

At least one other major motor dealer is owed payment from Autobahn for cars that were sold, according to a senior executive who requested anonymity due to commercial sensitivity.

Mr Clarence Lun, managing director of Fervent Chambers, said the next steps will be to provide a preliminary restructuring plan, meet with creditors and update on any potential court filings.

“We are evaluating all options and will be seeking inputs from creditors,” said Mr Lun, who is the lead counsel for the nine companies. He did not provide a timeline for how long the process will take.

Mr Tan said he is in talks with potential investors about funding, but declined to elaborate when asked for details, citing non-disclosure agreements.

Besides Mr Tan, who is the majority shareholder, all nine businesses have Mr Sanjay Kumar Rai registered as the minority shareholder. Both are Singaporeans.

Shariot was founded in 2020 with a fleet of 250 cars for hourly rental. In 2023, the service was expanded to include 300 vans. The vehicles are available across Singapore in more than 300 locations.

The possible restructuring involving Shariot comes on the back of another car-sharing service, BlueSG,

announcing in August that it was suspending its operation

to prepare for a reintroduction in 2026.