BM Mobility files application for judicial management

MAINBOARD-LISTED BM Mobility, which has suspended trading in its shares since July 2019, filed an application on Tuesday to go under judicial management, the board disclosed.

Arguing that the company "urgently needs to seek some breathing space to draw up a viable restructuring or rescue plan", the firm wants to appoint Deloitte & Touche's Andrew Grimmett and Lim Loo Khoon as the judicial managers.

In laying out the reasons to apply for judicial management - a status that it said could offer a reprieve from creditors - the company cited its "deteriorating financial position", such as its loss-making and "cash-flow insolvent" nature and net current liabilities position.

For instance, BM Mobility has received a notice from Pyxis Core, which earlier subscribed for US$100,000 in redeemable notes, seeking payment but "the company is presently unable to meet Pyxis' demand", the board said in its bourse filing.

Meanwhile, Silk Routes Financials, an investor that may plough in up to S$1 million in rescue funding under a non-binding memorandum of understanding, also suggested looking into a judicial management application, according to the BM Mobility board.

The board said a date for the hearing of the judicial management application has yet to be fixed by the court, but added that it will make more announcements when there are material developments.