You are here
Judicial managers of CNA Group sell core Singapore business to CEO
THE judicial managers of CNA Group have sold the building-controls systems provider's Singapore business to CNA president and chief executive Michael Ong for S$300,000 plus the replacement of existing performance bonds and guarantees.
The judicial managers, who are from Deloitte & Touche, said the company's major creditors were consulted on the sale.
The Singapore business, which involved the provision, design and implementation of integrated control and automation systems and IT solutions for buildings and facilities, will be transferred to a vehicle called CNA Development. All existing contracts and any guarantees or bonds associated with those projects will also be transferred to the new vehicle.
The judicial managers said that the company does not have sufficient financial resources to carry on the Singapore business for the long term without the support of the various project owners and main contractors. The business is also unable to bid for government projects while under judicial management.
Existing management is also critical to ensure the completion of existing projects and to stave off contingent liabilities if projects are terminated.
"As the ongoing projects progress, the judicial managers are finding it increasingly challenging to retain the existing management," the judicial managers stated.