BM Mobility receives restructuring proposal, MOU

MAINBOARD-LISTED electric transport company BM Mobility (BMM) has received a proposal and a memorandum of understanding (MOU) to explore a restructuring or reorganisation of the group.

Singapore-based boutique investment and advisory firm Silk Routes Financials is proposing to provide up to S$1 million as rescue funding to finance the proposed restructuring or reorganisation, which may involve an investment in the company and/or the acquisition or disposal of business, assets or undertakings.

BMM said the MOU is not intended to be legally binding except for certain provisions such as confidentiality, exclusivity, costs and governing law, according to a regulatory update on Thursday.

BMM and Silk Routes Financials have also committed to exclusive negotiations for three months starting from Jan 29, to carve out a definitive agreement.

Silk Routes Financials has separately proposed that BMM's board consider court-ordered administration or judicial management, to give the company temporary respite from its creditors, BMM said.

Doing so will also give BMM more time to gain clarity on its state of affairs as well as mull over options - including the proposed restructuring.

"As the matters raised in the MOU and the proposal are in the preliminary stages and remain subject to contract, there is no certainty or assurance as to whether the company will progress with any of them," BMM added.

BMM shares have been suspended since July 2019.