Kitchen Culture receives letter of demand, asked to repay S$1.5 million loan due to event of default
Paige Lim
EMBATTLED kitchen solutions provider Kitchen Culture on Monday (Jul 17) received a letter of demand from the lawyers of private investor Tan Gin Tat to repay a S$1.5 million loan.
This is due to an event of default relating to the change in the composition of its board of directors, for which Tan’s consent was not obtained.
In August 2022, Tan – a personal contact of Kitchen Culture’s executive director Lim Wee Li – entered into a redeemable loan agreement with the company, where he granted it a loan in the principal amount of S$1 million.
He then entered into a supplemental loan agreement with the company in December 2022, granting it a further principal amount of S$500,000. The group said the loans would be used to help meet its general working capital requirements.
Last month, Kitchen Culture announced that its current board of directors comprising Steven Lau, Lim Wee Li, William Teo, Ang Lian Kiat and Peter Lim – with the exception of Hao DongTing – would step down and be replaced by five new directors.
James Rogers, Yip Kean Mun, Lam Kwong Fai, Tan Meng Shern and Cheung Wai Man Raymond took over their positions. Hao was later redesignated non-executive chairperson of the board.
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According to the letter of demand sent by Tan’s lawyers on Monday, the change in composition of the existing board of directors as at Nov 1, 2022 – such as the removal of any existing director or addition of a new director – without Tan’s prior written consent amounted to an event of default.
This is in accordance with the redeemable loan agreement and supplemental loan agreement Tan had previously entered into with Kitchen Culture.
Upon the occurrence of the event of default, Tan is demanding repayment of the loan lent and/or extended to the company, amounting to S$1.5 million in aggregate within 30 days from the date of the letter of demand. If the loan is not repaid by this time, he will commence legal proceedings against the company.
Kitchen Culture said it will be seeking legal advice in relation to the letter of demand.
In March, it received a letter of demand from CDL Properties’ lawyer for allegedly owing S$250,970 in rent for four months.
Trading in the shares of Catalist-listed Kitchen Culture has been suspended since July 2021.
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