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Court orders winding up of Stratech, appoints liquidators from BDO
MAINBOARD-LISTED The Stratech Group announced on Thursday that a Singapore Court has granted applications to wind up the company, and has appointed liquidators from BDO to carry out the process.
The court sanction for winding up came after Stratech failed to garner enough support from its creditors on proposed schemes of arrangement. In particular, a secured creditor holding more than 50 per cent of the company's secured debt opposed the company's latest proposal, the company said. Since the scheme requires approval from every class of creditors, the inability to win support from secured creditors led the court to approve winding up.
Stratech said that its controlling shareholders are working with advisers towards a stay or rescission of the winding-up orders and a possible appeal against the court's decision. Stratech is currently controlled by the husband-and-wife team of executive chairman David Chew and executive director and chief corporate officer Leong Sook Ching, who holds a 34 per cent shareholding.
The company had previously entered into a US$20 million share placement agreement with Boulevard Capital Partners, and intended to convert debt owed to Mr Chew and Ms Leong into equity. Mr Chew and Ms Leong have also signed a binding term sheet to refinance their personal property to inject additional funds into the company. If Stratech is able to obtain sufficient funds in time, it could apply to stay the winding-up order, the company said.
In the meantime, Stratech said that it is still "committed to execute the ongoing contracts and provide full support to their customers". It said that it will hold discussions with liquidators on how to proceed.
Trading in Stratech's shares remains suspended.