AusGroup applies for judicial management

AUSGROUP : 5GJ 0% has applied to the Singapore High Court to be placed under judicial management, the mainboard-listed integrated service solutions provider said in an announcement on Wednesday (Nov 23).

Tan Wei Cheong, Matthew Stuart Becker and Lim Loo Khoon of Deloitte & Touche have been proposed as joint and several interim judicial managers and judicial managers of the company, it added.

On Nov 17, AusGroup updated that it was formulating and progressing with a restructuring plan for the financial obligations of the company with Deloitte. It also said that it continued to be in discussions with several parties for the potential sale of certain assets and businesses.

“While some of these confidential discussions are at an advanced stage with indicative draft terms, there is no assurance that the potential transactions will materialise,” it added.

The judicial management applications follow AusGroup’s trading halt called on Nov 7 and trading suspension called on Nov 10. In addition to the potential sale, AusGroup said that discussions with its management to assess the company’s financial position led to the trading suspension recommendation.

AusGroup in the last month announced the resignation of Christian Johnstone as chief financial officer, effective Feb 6, 2023 and the resignation of Shane Kimpton as managing director, though Kimpton remains chief executive officer.

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AusGroup shares last traded at S$0.009 on Nov 4, the lowest since the company went public in 2005.