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Court grants further extension to China Sky judicial management

THE Singapore High Court has granted an extension to the judicial manager of China Sky Chemical Fibre Company for a judicial management order to March 13, 2020, from Sept 13 previously.

The judicial manager, Yit Chee Wah of FTI Consulting, had applied for an extension on Sept 3, which was granted on Thursday. He had previously applied for a separate extension on Feb 21, which was granted on March 8.

Mr Yit was appointed in September 2018 as judicial manager after the company applied for judicial management in August 2018.

In January this year, the company said it was selling its wholly-owned unit Deluxe Dragon International Limited, to the company's chairman He Zhidong for S$190,000. Deluxe Dragon is an investment holding company and owns the China-incorporated Qingdao Zhongda Chemical Fiber Company Limited.

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The judicial manager had deemed at the time that it was in the best interests of China Sky’s creditors to sell Deluxe Dragon’s shares to Mr He as Qingdao Zhongda is debt-ridden and has no operations which the judicial manager can continue with.

China Sky’s shares are currently suspended. A trading halt was called on Aug 12, 2016.