Innopac's bid for judicial management dismissed due to unsuccessful application to adjourn court hearing

INNOPAC Holdings has clarified that its application to be placed under judicial management has been dismissed as a result of an unsuccessful application to adjourn the court hearing for the application.

The mainboard-listed company made this clarification in a bourse filing on Saturday following an update on Feb 24, when it only said that its application to adjourn the court hearing for the judicial management application was unsuccessful.

Innopac also noted on Saturday that the company can “resubmit a fresh judicial management application in the future if the situation requires”.

The troubled investment holding company applied last August to be placed under judicial management. 

Innopac was served a delisting notice in 2019 after failing to meet the necessary requirements to remove itself from the Singapore Exchange’s watch-list over the past 36 months.

However, the company later announced that it had insufficient cash resources to make an exit offer to shareholders. 

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For FY2019, Innopac had recorded a net loss of S$3.8 million, versus S$8.6 million in the previous year. 

Revenue for the year stood at S$59,000, down 56.6 per cent from S$136,000 a year ago, due to exchange differences on foreign operations translation and absence of gains from trading of marketable securities, along with lower rental income of investments.

In 2019, Innopac faced claims of nearly S$14.7 million, over the negative account balances of two subsidiaries, from Saxo Bank. The company later appointed its solicitors to contest the claims and proceed with a counterclaim against Saxo Bank.

That year, a memorandum of understanding for a proposed joint venture to explore the development of a land parcel in Malaysia into an industrial and recycling hub was terminated as well.

Then in 2020, Innopac received a notice of demand from a lender for S$943,532. The company said then that it was “reviewing and verifying” the notice of demand. 

Innopac shares have been suspended since June 7, 2018.