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High Court grants 2-month moratorium on NK Ingredients: Soilbuild Reit manager

SB Reit Management, manager of Soilbuild Reit, announced on Tuesday that the Singapore High Court had on March 20, 2019 granted a moratorium for a period of two months to May 20 on proceedings against NK Ingredients over the rental of a property in Pioneer Sector 1.

NK Ingredients is currently in default for failing to pay rent and other sums payable under the lease agreement. It had filed the moratorium application pending its proposal of a scheme of arrangement to its creditors. As at the date of this announcement, the amount owing by NK Ingredients to Soilbuild Reit is S$2.32 million, which includes the rental charges to NK Ingredients for March 2019.

As part of the conditions for the moratorium, NK Ingredients has to make payment to the trust for the following: S$100,000 as part payment of the rental charges, property tax and land rent for the month of April on Apr 1 2019, the balance of the rent for the month of April on Apr 20 2019, and the rent for the month of May on May 1, 2019.

In addition, NK Ingredients has to submit financial information to the Singapore High Court and disclose to its creditors within four weeks the background to its assumptions with respect to sales and wages made in their affidavit filed in support of the moratorium application.

The amount of security deposit held by Soilbuild Reit is S$2.56 million. The excess of the security deposit over NK Ingredients' arrears amounts to S$235,414.88, which is equivalent to approximately half a month's rent under the lease agreement.

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