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Advance SCT restructures debts with two major creditors
ADVANCE SCT, a supplier of copper-based products, has entered into definitive agreements with two major creditors as part of an effort to restructure and capitalise part of its debt.
In an exchange filing on Sunday, the group said it was informed that Qingyuan Shengli Copper Materials (QSCM) had on July 7 entered into an agreement to assign the entire debt of 41.4 million yuan (S$8.40 million) owed by Advance SCT to a certain Zhang Baoan.
Mr Zhang, a Chinese national with substantial assets in Singapore and an independent third party, has confirmed the agreement and separately pledged to support Advance SCT's proposed debt capitalisation exercise, said the firm.
The group has also signed an agreement with QSCM, Mr Zhang and CNCM Capital, Advance SCT (Qingyuan) Co and Simon Eng to release all parties from any further claims against one another, other than the debt above. As a result, all lawsuits will be withdrawn.
At the same time, Advance SCT has entered into an agreement with another creditor, Saffron Elite, on a two-year moratorium in the repayment of a loan that has S$1.24 million unpaid.
After the two years, a three-year debt repayment plan will kick in, where Advance SCT will pay 30 per cent of the debt per year in the first two years, and the remaining 40 per cent in the third year. The rate of interest on the debt will remain unchanged at 6 per cent a year on the outstanding sum.
Advance SCT said that these actions are part of the firm's plans to reduce its debt burden and making the firm solvent again.