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CNA Group: No hearing date yet for appeal to further extend judicial management order
CNA Group will face possible liquidation and winding up if its appeal to further extend its judicial management order gets rejected by the Court of Appeal, the judicial manager from Deloitte & Touche said on Monday in a filing responding to Singapore Exchange queries
It added that liquidators are likely to apply for the delisting of the company, assuming that the SGX-ST does not grant the company further time extension to submit the resumption of trading proposal. The statement added: "In such circumstances, it is unlikely that an exit cash offer would be made to shareholders of the company, as the company is insolvent ie liabilities exceed its assets."
The judicial manager said that no hearing dates have been fixed for the appeal and that there would be a case management conference which will see the court giving directions on the appeal’s timeline. It added that the appeal would likely be heard in the third quarter of 2019, with updates to be provided when the date is fixed.
On March 11, 2019, Deloitte & Touch applied for a further extension of the judicial management order; however, the court did not grant it.
The application for a stay pending appeal was heard on March 12 and granted by the Singapore High Court, whereby the court allowed an extension of the judicial management order pending the final determination and disposal of the appeal.
This was subject to the judicial manager not taking any further steps in the judicial management, save for applying to the SGX-ST for an extension of time for submission of a resumption of trading proposal.
The stay pending appeal was needed, otherwise CNA would not be protected against any enforcement actions by creditors in the interim, which would render the appeal nugatory.