Libra Group replies to SGX queries on board reconstitution

LIBRA Group has shed more light on the thinking behind its board reconstitution announced last week, in response to queries from the Singapore Exchange (SGX).

Among other things, the SGX had asked who would lead and drive the restructuring at Libra, given that its chairman and executive director Chu Sau Ben had resigned after being served a bankruptcy order.

Libra replied last Friday that Christine Liu will remain as Libra's chief executive officer and executive director. She will be responsible for the day-to-day operations of the company and Kin Xin Engineering, which is Libra's sole operating subsidiary, it said.

It added: "Notwithstanding Mr Chu Sau Ben's resignation, he will remain as employee and re-designated as deputy general manager of Kin Xin, assisting Ms Liu in the day-to-day operation of Kin Xin."

Libra has also appointed financial and legal advisers to assist and provide professional support in the restructuring. 

The SGX also sought more details on why independent director Joel Leong Kum Hoe, who joined the board on July 30 last year, had resigned. Libra had earlier said that Mr Leong resigned due to his "differing views on the board's plans to restructure the group".

Libra explained that Mr Leong had felt that the company should be put in judicial management as the best course of action, but the majority of the board of directors felt that the company should continue to try to find ways to turn things around via a scheme of arrangement. 

SGX also noted that new independent director Calvin Tan Siok Sing holds past and present directorships in a few troubled companies such as Qingmei Holdings, Li Heng Chemical Fibre Technologies and Dukang Distillers.

However, Libra's board and its Catalist sponsor, RHT Capital, noted that no regulatory actions were taken against Mr Tan or the companies.

RHT Capital said: "There is no reason for the sponsor to opine that his past directorships would deem Mr Tan unsuitable to be an independent director."