No Signboard places six subsidiaries into creditors’ voluntary liquidation
NO SIGNBOARD will be placing six of its indirect wholly-owned subsidiaries into creditors’ voluntary liquidation (CVL), the restaurant operator said in a bourse filing on Wednesday (Dec 21).
The six subsidiaries are investment holding companies Tao Brewery, NSB-Crab Factory and NSB-Crab Factory (China); food caterer Food Terminal Trading; restaurant NSB-Mom’s Touch and Draff Beer. They were incorporated in 2017 and 2018.
The Catalist-listed company said the subsidiaries are now dormant and cannot by reason of their liabilities continue their business. “The group has decided to proceed with the CVL of the subsidiaries due to its cash flow problems and its inability to pay its debts as they fall due,” it added. (*see amendment note 1)
As the subsidiaries are loss-making, the CVL is expected to contribute positively to the consolidated net tangible assets and earnings per share of the group for the financial year ending Sep 30, 2023.
Assuming that the CVL commenced on Sep 30, 2022, the pro forma effect on net tangible assets per share of the group will be S$1.07. Net tangible assets per share would be S$1.10 before the CVL. (*see amendment note 2)
And assuming that the CVL commenced on Oct 1, 2021 – the beginning of the group’s most recently completed financial year – the pro forma effect on the loss per share of the group will be S$0.53. Loss per share would be S$0.58 before the CVL.
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The company is proposing to appoint licensed insolvency practitioner Chan Yee Hong of Nexia TS Risk Advisory as its provisional liquidator. The meeting of shareholders and creditors of the six subsidiaries will take place on Jan 9 and 10 next year.
Trading of No Signboard shares has been suspended since January this year.
*Amendment note 1: An earlier version of the article wrongly stated that the group was mainboard-listed.
*Amendment note 2: An earlier version of the article wrongly stated the year as 2023.
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