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Swee Hong obtains court order to restrain proceedings against it for six months
SINGAPORE'S listed construction firm Swee Hong on Thursday said it obtained on Feb 25 an order from the High Court which restrains further proceedings in any action against the company for six months.
"The order is intended to bring stability to the company's operations, and allow the company time to finalise the scheme of arrangement in consultation with its key creditors, for the benefit of all the company's creditors," it said.
It added that: "The order also strengthens and reinforces the company's ability to perform its obligations under its ongoing public sector construction contracts."
Swee Hong will continue to operate as usual in providing customer services while it puts in place a scheme of arrangement.
This follows its announcement two weeks ago that it had filed an application in the High Court to propose a debt restructuring plan for three of its creditors - United Overseas Bank, the Building and Construction Authority of Singapore, and ACL Construction.
Section 210(10) of the Companies Act (Cap. 50) states that where no order has been made or resolution passed for the winding up of a company, and any such compromise or arrangement has been proposed between the company and its creditors, the Court may restrain further proceedings in any action or proceeding against the company, subject to terms.