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Libra Group says it cannot continue as going concern

Catalist-listed Libra Group announced on Tuesday that it will not be able to continue as a going concern, as stipulated by Catalist rules, due to various claims having been filed against two subsidiaries of the company.

It said various writs of summons have been filed against its wholly owned subsidiary, Cyber Builders Pte Ltd, over claims for workplace injuries, rental of equipment and provision of services as well as goods sold and delivered to Cyber Builders.

Cyber Builders has also received demand letters, payment reminders, and other notices from trade and other creditors, as well as a letter from Maybank Singapore recalling a loan extended to the company after it defaulted on the loan.

Cyber Builders, along with another subsidiary, Libra Building Construction Pte Ltd, have also been served with various claims filed in the Small Claims Tribunal against them, and various other payment reminders and demand letters.

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Libra Group's board said it is assessing the impact of these matters on the group and will consult with legal advisers on its legal position and strategy for the relevant legal proceedings.

It added that, in light of the above, Libra Group has not been able to demonstrate that it is able to continue as a going concern in accordance with Catalist Rules. "The board has, following discussions with the company’s sponsor, recommended that the trading of the shares of the company be suspended with immediate effect," it said.