Asiatravel.com obtains default judgement for S$7.4m claim against creditor

DISTRESSED Asiatravel.com has obtained a default court ruling in China for its S$7.4 million claim against creditor Zhonghong Holding Co, the Catalist-listed company announced in a bourse filing on Tuesday. 

According to Asiatravel.com, Zhonghong entered a convertible note agreement with the company in August 2018 for a principal amount of S$10 million, but only paid S$2.65 million. In June this year, Asiatravel.com served a writ of summons on Zhonghong in China via the International Cooperation Bureau of the Supreme People's Court. 

With Zhonghong failing to appear in court, Asiatravel.com has obtained a default judgement for the outstanding S$7.35 million, as well as over S$6,000 in costs. 

Separately, Asiatravel.com has obtained a six-month extension of its ongoing debt moratorium from the Singapore High Court, starting from Oct 9.

On Sept 27, Asiatravel.com had applied to the court for a deadline extension to convene a meeting of its creditors. The company has been undergoing a restructuring exercise since February 2018. 

Shares of Asiatravel.com last closed at S$0.027 before trading was suspended in July 2018.