DBS wins bankruptcy bid on Nelson Loh in relation to S$14m loan

FAILED businessman Nelson Loh was adjudged a bankrupt by the Singapore High Court last month, after DBS Bank commenced bankruptcy proceedings against him in relation to some S$14.2 million in outstanding debts, court documents revealed.

Another creditor, Citibank NA, which filed a notice that it supported DBS' bankruptcy application, is also owed some US$2.7 million by Mr Loh, court documents also showed.

He, the co-founder of Bellagraph Nova, had stood as guarantor to secure two facilities from DBS for entities linked to him. Bellagraph Nova had launched a £280 million (S$509.5 million) bid for the Newcastle United football club last year and was shortly after caught out in a slew of false claims.

Of the two facilities for which Mr Loh stood as guarantor, one was a S$9 million term-loan facility provided in January last year to Novena Global Healthcare Pte Ltd and Novu Fasthetics Pte Ltd; the other was a S$5 million temporary bridging loan facility extended to Novena Global Healthcare last April.

DBS, represented by Ng Yeow Khoon and Claudia Khoo from Shook Lin & Bok, filed the application in November last year on the grounds that the sum was payable immediately and that Mr Loh appeared unable to pay it.

At the hearing on Dec 17, the High Court also granted an order for Leow Quek Shiong of BDO to be appointed as the private trustee of Mr Loh's estate.

Court documents reveal that several attempts were made to serve the bank's statutory demand, and later, the bankruptcy documents, on Mr Loh at a residence in Sentosa Cove, which he co-owned.

On two separate occasions, the clerk who attempted to serve the papers was told upon arrival there by a "Caucasian female" that Mr Loh "was not in". On the other occasions, no one had answered or opened the door.

Little has been known of his whereabouts since the scandal blew up last September amid a police probe into alleged forged accounts of Novena Global Healthcare Group (NGHG), and as investors came knocking to recover their monies.

The Business Times further understands that Maybank Singapore has commenced bankruptcy proceedings against Mr Loh's cousin, Terence Loh, in November. One source said the matter has been adjourned.

Here too, Citibank has filed a notice supporting this application on the basis that Mr Terence Loh owes the bank US$2.7 million, which, as in the case involving Mr Nelson Loh, arose from a personal guarantee for debts held by Novena Global Healthcare.

DBS was also the adviser for the Lohs' vehicle, Dorr Global Healthcare International, in the general offer for Catalist-listed Axington, which was completed in mid-July last year.

Last December, the Singapore High Court granted the application by DBS to shutter Novena Global Healthcare, a Singapore-incorporated firm founded by the cousins back when they were business chums. The close ties between both men have soured as the scandal deepened.

Mr Terence Loh has sought to distance himself from his cousin and has said that he has been assisting the police in their investigations.

A month ago, he lodged a police report, alleging improper transfers of over S$5 million from the accounts of Giron, a wine trader and distributor partly owned by the pair and which is also being wound up.

Amid his mounting troubles, Mr Terence Loh appears eager to preserve the business of Novu Fasthetics - a firm that operates aesthetics clinics - and to shelter it from the troubles at parent Novena Global Healthcare. He has said that there were parties interested to acquire the Novu business, given its track record and prospects.