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Libra Group receives letters of demand, applies for court protection

LIBRA Group has received four letters of demand from creditors collectively seeking about S$9.3 million in repayments, as well as its mortgaged property at Sungei Kadut, the company revealed in a bourse filing on Wednesday. 

Just a day earlier, the Catalist-listed firm and its wholly-owned unit Cyber Builders applied to the High Court for six months of protection from creditors.

Under Section 211B of the Companies Act, this gives Libra an interim debt moratorium of up to a month, before the High Court decides on the application. 

On Sept 2, trustee firm Watiga Trust sent Libra a letter of demand seeking payment of S$1.77 million due for notes Libra had earlier issued in April, including accrued interest. 

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Watiga said that the notes were immediately repayable due to events of default having occurred. It had sought repayment by Sept 4, after which it would take steps to enforce repayment. 

Subsequently, on Sept 3, Maybank Singapore sent a letter of demand to Cyber Builders, seeking to possess the property at 34 Sungei Kadut Loop within a month from the letter being served. 

Cyber Builders has defaulted on borrowings from Maybank that are secured by the property's mortgage, according to the letter. Maybank said that it will pursue legal action to recover the property past the deadline. 

More recently, on Sept 17, UOB sent a letter of demand to Cyber Builders seeking a total repayment of about S$7.54 million in overdue banking facilities by 5pm on Friday. 

UOB also sent a letter of demand for the same sum to Libra, which had provided guarantees on the banking facilities taken out by Cyber Builders. The bank said that past the deadline, it will take all necessary steps, including legal action, to recover the sum due. 

Libra shares have been suspended from trading. They last closed at 3.5 Singapore cents on Aug 22.