Brian Koo may withdraw lifeline for honestbee

Meanwhile, ex-director denies startup's allegations he had breached his fiduciary duties during his time with firm

Sharanya Pillai

Published Wed, Mar 25, 2020 · 09:50 PM

Singapore

HONESTBEE may lose the support of its white knight, LG scion Brian Koo, the distressed startup told its creditors in an e-mail on Wednesday evening seen by The Business Times.

In the email, honestbee said that there has been a delay in working capital funds from Mr Koo's venture firm Formation Group, as well as FLK Holdings, a US-incorporated vehicle owned by Mr Koo and Formation. FLK was to have financed the startup's restructuring of US$230 million in debt.

However, FLK and Formation are now re-considering their continued support for the company due to "the worsening Covid-19 pandemic across the world and the resulting uncertainties", honestbee said in the email.

Under honestbee's proposed scheme of arrangement, FLK was to have injected US$7 million into the company to repay creditors owed above S$500 each with three cents on the dollar in cash. honestbee was to have repaid the remainder of its debt via issui…