OCBC files bid to wind up consumer electronics trader TT International

[SINGAPORE] OCBC has filed a winding-up application against consumer electronics trader TT International, whose debts are being restructured under a scheme of arrangement. 

The company owes OCBC at least S$21.7 million, according to a bourse filing by TT International on Nov 20. Of this sum, S$21.5 million is in unsecured debt and around S$294,000 is in secured debt. 

Under the terms of the scheme of arrangement which it has with its creditors, no creditor shall take any steps to wind up the company until the new scheme is terminated, said TT International.

It added: “The new scheme has not been terminated. OCBC is a creditor of the company and is subject to the terms of the new scheme.” 

TT International previously held a majority stake in the failed Big Box warehouse mall in Jurong East. Its restructuring excludes the Big Box subsidiary which owned the mall. The unit started voluntary liquidation proceedings in September 2018.

In 2018, TT International proposed a new scheme in which it would sell in full 10 wholly owned subsidiaries of the group involved in furniture and consumer electronics sales, for a sum of S$48 million to Seychelles-incorporated firm Celestial Palace. The previous scheme proposed was to convert non-sustainable debts into redeemable convertible bonds, but creditors chose to approve the new scheme.

In July 2019, Celestial Palace decided to invest in TT International instead of buying its assets. It proposed to grant the company a convertible loan of S$48 million, in order to provide alternative funding to help implement the new restructuring scheme. 

TT International also extended a moratorium it previously obtained, which protects it from creditors, as it needed time to obtain necessary approvals from the relevant authorities to facilitate the completion of the convertible loan and the implementation of the new scheme.

However, in December 2023, TT International and Celestial Palace were unable to reach an agreement on the revised quantum of the proceeds from the convertible loan as well as another loan, and they agreed to mutually terminate the loans.

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TT International then entered into a loan agreement with a new lender, a non-banking financial company registered with the Reserve Bank of India.

Since then, TT International has been holding meetings with its creditors, but voting on the amended new scheme has been repeatedly adjourned. 

It said in a bourse filing on Friday (Nov 28): “The company is assessing the impact of the winding-up application and its next steps.” 

For the half-year ended Sep 30, it reported a net loss of about S$2 million, reversing from a profit of S$1.7 million in the year-ago period. Revenue stood at around S$8 million, down 22.5 per cent from S$10.3 million previously.

Shares of TT International have been voluntarily suspended since Aug 4, 2017.