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UOB appoints receivers for Libra Group's Loyang Drive property
CATALIST-LISTED building solutions provider Libra Group, which suspended trading in August when it could no longer continue as a going concern, disclosed on Wednesday that United Overseas Bank (UOB) has appointed receivers for the company's mortgaged property in Loyang Drive.
UOB had in September sent letters of demand claiming that certain default events had happened with banking facilities granted to Libra Engineering Pte Ltd. According to earlier bourse filings by Libra, the bank has asked for the payment of the equivalent of more than S$1.3 million - which represents the sums guaranteed, as well as outstanding amounts, under the entire credit line.
Libra has now said that it received a notice from KPMG on Tuesday over the mortgaged property at 53 Loyang Drive, which the company bought for S$16 million in 2014. Bob Yap, Martin Wong and Toh Ai Ling were named the joint and several receivers for property.
Libra's board said that the company is taking legal advice on its next steps and is "considering its options" when it comes to the latest letter appointing receivers for the Loyang property.
The board noted in its announcement that the Loyang property is excluded from Libra's six-month debt moratorium, which was granted by the High Court on Oct 14. (see amendment note)
Another property, at 34 Sungei Kadut Loop, was also left out of the court protection from creditors. Lender Maybank Singapore had separately sent a letter of demand to a wholly-owned Libra unit in September, seeking to take possession of the Sungei Kadut property.
Libra will give updates to its shareholders "when there are material updates as may be necessary or appropriate", the board added, while advising shareholders and potential investors to exercise caution when dealing in the company's securities.
Libra shares last changed hands at 3.5 Singapore cents before the trading suspension.
Amendment note: An earlier version of this story gave an inaccurate date for the debt moratorium. It has since been corrected to reflect the proper date.