No Signboard files application to subject OCBC to moratorium terms

RESTAURANT chain No Signboard Holdings on Friday (Sep 2) filed an application with the court to subject creditor OCBC to its ongoing debt moratorium, so that the bank may not initiate any legal proceedings against the company.

This comes as No Signboard and OCBC have not been able to agree on the terms of repayment of a S$3 million outstanding bank loan, the company disclosed in a Monday (Sep 5) bourse filing.

No Signboard believes that it will not have sufficient funds to make the monthly repayments of the loan from September, until it completes the agreement entered in July with potential investor Gazelle Ventures.

No Signboard is in the midst of a court-supervised process to restructure its liabilities. The Singapore High Court had in May granted the company and 2 of its subsidiaries, NSB Hotpot and NSB Restaurants, a moratorium until Oct 29.

Trading in shares of No Signboard has been suspended.