More questions over DeClout's deployment of loan proceeds

I REFER to the article "DeClout's minorities up in arms over S$10m margin loan" (BT, April 14)

The article correctly spells out the basic terms of DeClout's highly questionable loan agreement but upon further inspection of the "charge over shares" document, which is available to all DeClout shareholders at the company's corporate offices, it becomes clear the loan does not only carry a pledge over all shares of Procurri but the entire assets of DeClout.

In essence, the company has pledged all its assets for a mere S$10 million to a host of unnamed individuals. The loan agreement raises important corporate governance concerns which have been passed on to the company's Catalist sponsor SAC Capital. To summarise the key concerns: How can this loan be in the best interests of minority shareholders? Have the independent directors approved this loan agreement? Was there no alternative funding available to the company? Did they take into account the severe consequences of the loan on its core asset Procurri, an SGX mainboard-listed company? How can the lead independent director at both DeClout and Procurri be one and the same person?