DeClout's minorities up in arms over S$10m margin loan

Singapore

DECLOUT'S decision to take a S$10 million margin loan that triggers immediate repayment if two of its executives lose control of the company has riled a group of minority shareholders who is threatening to remove the management.

On Wednesday, DeClout, a Catalist-listed holding company for technology firms, took a two-year loan from a group of six private investors against its entire 46.83 per cent stake in mainboard-listed enterprise hardware supplier Procurri.

The loan accrues 8 per cent interest per annum. The removal of chairman and group chief executive Vesmond Wong from his role is considered an event of default. So is the removal of executive director Kow Ya. If Mr Wong's stake in DeClout falls from 12.24 per cent now to below 11 per cent, the loan also becom…