Court grants No Signboard and subsidiaries moratorium till Oct 29

DEBT-LADEN No Signboard Holdings said the Singapore High Court has granted it and 2 of its subsidiaries a moratorium lasting till Oct 29.

On Apr 29, the embattled restaurant operator and wholly owned NSB Hotpot and NSB Restaurants applied for moratorium relief spanning 6 months, under Section 64 of the Insolvency, Restructuring and Dissolution Act.

They sought court orders that no resolution shall be passed to wind up the companies and that no legal process shall be commenced or continued against any property of the applicants, among other things.

The grant of the moratorium on Thursday (May 26) is subject to disclosure requirements. No Signboard has to file an affidavit by Jun 20, and every calendar month thereafter, that discloses its consolidated monthly management accounts.

It also has to make available to the creditors the consolidated cash flow projections until the end of the moratorium period. The first disclosure has to be filed by Jun 20 and updated every 2 months.

If the company or the subsidiaries acquire or dispose of any property or grants security over any property, information about the transaction has to be submitted to creditors within 14 days.

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The court on Thursday also granted super priority status over the debt arising from rescue financing secured by No Signboard from Gazelle Ventures, which has agreed to invest up to S$5 million into the group.

Gazelle Ventures, which invests in food, agritech and sustainable agriculture-related businesses, is a Singapore-incorporated company jointly owned by Gazelle Capital and Valiant Investments.

Trading of No Signboard’s shares has been suspended since Jan 24, 2022.