Novena Global Healthcare's Terence Loh declared bankrupt

IN a closure of sorts to Singapore's bewildering scandal involving the Loh cousins who stunned business circles a year ago with their bid for Newcastle United, the "last one standing" - Terence Loh was declared bankrupt on Thursday.

This comes six months after his estranged cousin Nelson Loh, whose whereabouts are still not known since the spotlight turned on the cousins' businesses last year, was also adjudged a bankrupt.

Mr Terence Loh's bankruptcy order was granted by the High Court following proceedings commenced against him by creditor Maybank Singapore in September last year to recoup some S$3 million in outstanding debt. The order was uncontested, the lender's lawyer Ng Yeow Khoon of Shook Lin & Bok confirmed to The Business Times.

In an earlier Straits Times report, Mr Terence Loh, 43, was said to have total outstanding debts of some S$70 million owing to five banks, involving personal guarantees for loans extended to Novena Global Healthcare - the flagship firm the duo founded.

The latest development marks a huge blow to Mr Terence Loh who sought to distance himself from his cousin, even as he attempted to navigate a "tight window" amid mounting legal claims to hunt for a white knight or investor to preserve the businesses in the group, chiefly Novu Fasthetics, which operates aesthetics clinics. He had earlier told BT that there were parties interested to acquire the Novu business, given its track record and prospects.

The bankruptcy proceedings against Mr Terence Loh had been adjourned several times prior to Thursday. According to ST, Mr Terence Loh had submitted an individual voluntary arrangement proposal to the court in April, that he found a white knight, who would help place him in a better position to repay his other creditors.

Those hopes were however dashed and at a hearing last month, his lawyer Muralli Rajaram of K&L Gates Straits Law said his client was not proceeding with the proposal.

Mr Nelson Loh of the infamous Bellagraph Nova - the firm that launched a curious £280 million (S$510 million) bid for the Newcastle United football club last year and shortly after, was caught out in a slew of false claims - was declared bankrupt in January after DBS Bank commenced bankruptcy proceedings against him in relation to some S$14.2 million in outstanding debts.

With both men declared bankrupts, it marks an undignified end to the scandal involving the cousins which erupted last year. The saga involved bizarre events, from doctored photographs of former US president Barack Obama in their marketing materials to claims on Instagram - subsequently removed - that their firm owned a mind-boggling fleet of private jets. One by one, it has all come crumbling down.

Last December, the Singapore High Court granted the application by DBS to shutter Novena Global Healthcare which was founded by the duo back when they were business chums. As the scandal deepened, their ties had soured.

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