Hiap Seng Engineering and subsidiary apply for judicial management

MAINBOARD-listed Hiap Seng Engineering on Tuesday said that it has, with its subsidiary, HS Compression & Process (HSCP), filed separate applications in the High Court for orders that they be placed under judicial management (JM).

The JM applications will be heard on a date to be fixed by the Court.

The board of HSCP has, in the JM applications, proposed the appointment of Oon Su Sun and Lin Yueh Hung from RSM Corporate Advisory as judicial managers to manage the affairs, business and property of the company and HSCP during the JM period.

Hiap Seng has also notified the Singapore Exchange of the JM applications.

The suspension of trading of the company's shares, which began last November, continues.

In February this year, Hiap Seng, which was going through restructuring, reported that it had widened its third-quarter losses as turnover took a tumble from lower recognition of revenue.

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Net loss was S$5.43 million for the three months to Dec 31, 2019, worsening from S$834,000 in the year before; its revenue fell by 31.7 per cent year on year, to S$31.8 million.