Libra Group's going-concern status crippled by claims

Singapore

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 that have been filed against two subsidiaries of the company.

The mechanical and electrical engineering firm said its board has recommended that its shares be suspended from trade, with immediate effect, to "ensure that no person is trading in the shares of the company without sufficient information that is required to enable such a person to make an informed decision".

Libra Group said on Wednesday that multiple claims - amounting to millions of dollars - have been filed against its wholly owned subsidiaries, Cyber Builders Pte Ltd (CB) and Libra Building Construction Pte Ltd (LBC).

CB has been served with various writs of summons over claims for workplace injuries, rental of equipment and provision of services as well as goods sold and delivered to the company. CB has also received demand letters, payment reminders, and other notices from trade and other creditors.

Maybank Singapore has issued a letter to CB, stating that the company is in default of a loan extended to it by the bank and recalling the loan. A company, Bachy Soletanche Singapore Pte Ltd, has obtained adjudication determinations against CB, pursuant to the Building and Construction Industry Security of Payment Act.

LBC, along with CB, have been served with various claims filed in the Small Claims Tribunal against them. LBC has also been served with a writ of summons, filed by MVM Roofing Pte Ltd, in respect of a claim against the company, along with various other payment reminders and demand letters.

Libra Group said on Wednesday that its board is assessing the impact of these matters on the group and will be getting legal advice on how to proceed. It also said 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.

It added that it would make further announcements on these matters in due course and on any other material developments as and when necessary.