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TT International gets nod to update term sheet; move will give it access to interim funding
TT International stands to access interim funding after reaching agreement with an unnamed investor to update a term sheet for some S$125 million of proposed investment.
The distressed consumer electronics retailer said after Tuesday's trading hours that the investor has agreed to extend additional flexibility towards the use of the investment proceeds. The term sheet for the investment has thus been amended to provide possible interim funding to TT International, which may be critical for the firm to continue operations at the Big Box building.
The move came after negotiations broke down on new debt financing for statutory payments due from Big Box Pte Ltd, TT International's 51 per cent owned subsidiary and landlord of the Big Box Building. Big Box Pte Ltd has been placed under receivership.
TT International's warehouse retail scheme (WRS) licence was terminated after it failed to make timely payment of differential premiums that also fall under the statutory payments.
But the unnamed investor has agreed to remove the renewal of the WRS as a condition precedent for the S$125 million investment, the firm said.