No Signboard insists litigation over beer deliveries not material financially

CATALIST-LISTED restaurant operator No Signboard Holdings 1G6 has reassured the bourse operator that litigation over beer deliveries will not materially affect its financial position and ability to do business, as it asked that its counter-claims be taken into account.

It was replying to the queries from the Singapore Exchange (SGX) on Thursday (Dec 16) over claims of S$1.55 million from wholesale distributors Sprawl Transport & Logistic against its subsidiary Danish Brewery Pte Ltd (DBPL) for alleged shortfall of beer.

This comes as No Signboard had earlier fielded queries from the SGX on Dec 10 over how the restaurant operator No Signboard Holdings has reassured the bourse operator that litigation over beer deliveries will not materially affect its financial position and ability to do business, as it asked that its counter-claims be taken into account.

However, the company stated in the response on Thursday that the net financial impact would be only S$1 million, given that it is counter-claiming S$550,000 for unpaid trade receivables and about 500 kegs of beer that Sprawl had refused to take delivery.

It also stated claims from Sprawl are unmeritorious, and that it is raising funds for working capital purposes to enhance the group's financial position.

Its shares closed 4.8 per cent or S$0.002 lower at S$0.04 on Thursday, before its response was filed.