High Court grants application from DBS to wind up Novena Global Healthcare

SINGAPORE'S High Court on Friday granted an application from DBS Bank to wind up Novena Global Healthcare Group (NGPL).

Meanwhile, its subsidiary Novu Fasthetics (NOVU) said in a statement on Friday that operations will continue as usual, and that several parties have expressed interest in acquiring part or all of NOVU's businesses.

RSM, which has been appointed the liquidator, confirmed that the winding up order granted by the court relates only to NGPL and not other entities or subsidiaries.

Scandal-hit NGPL - which owed DBS over S$14 million - was co-founded by Singaporean cousins Terence and Nelson Loh. It is the Singapore subsidiary of the Cayman Islands-incorporated Novena Global Healthcare Group (NGHG), which made headlines after Ernst & Young filed a police report alleging that its unauthorised signatures had appeared on NGHG's financial statements.

The Accounting and Corporate Regulatory Authority (Acra) has also said it will take enforcement action after it was discovered that entities linked to the Lohs had not filed annual returns.

In a statement on Friday, Mr Terence Loh said: "We respect the court's decision and will abide fully by the legal process."

Mr Nelson Loh has left Singapore.

Medical aesthetics chain NOVU - which operates its aesthetics centres under the trade name Novu Aesthetics - emphasised that the winding-up order made against its Singapore-registered parent company will not affect NOVU's day-to-day operations.

Mr Terence Loh added that there are parties which have expressed interest to acquire the Novu business, owing to its track record and growth potential. He went on to say: "Some have already begun conducting due diligence. I believe that through RSM we are in good hands to conclude negotiations quickly to realise value and to protect Novu as a going concern."

Marjory Loh, executive director of NOVU, emphasised in a statement that it is "business as usual" for NOVU's six outlets in Singapore, despite the corporate and legal issues besieging its parent company.

The chain said that it will continue to honour packages that had been purchased by its customers. Most of them are said to be Singaporeans. Formerly known as PPP Laser, NOVU was rebranded in 2016.

Ms Loh added that NOVU will continue to hire more doctors and therapists to manage the volume of patients it is receiving.

Mr Terence Loh and Mr Nelson Loh also formed Bellagraph Nova Group (BN Group) this year with Evangeline Shen. The group, which made a bid for the Newcastle United football club, came under fire after it was found to have doctored photos of former US president Barack Obama in its marketing materials.