Autobahn Rent A Car and related companies’ moratorium application dismissed
The High Court ruling opens the way for creditor actions and insolvency proceedings, which may include being wound up
[SINGAPORE] An application for a moratorium by a group of eight companies, including Autobahn Rent A Car, was dismissed by the High Court on Friday (Dec 26).
The group had sought a six-month moratorium and a scheme of arrangement in an application heard by Judicial commissioner Sushil Nair.
In earlier court filings seen by The Business Times, 22 creditors opposed the application.
With an extended moratorium no longer on the cards, it opens up the group to creditor actions and insolvency proceedings, which may include being wound up.
The eight companies are: Autobahn Rent A Car, Hamilton Autohub, Hamilton Capital, Shinsei Rent A Car, AhTan Car Repairs, Hamilton Autobahn, 88 Auto and Thundercarz.
BT understands that the group, represented by Fervent Chambers, intends to appeal the decision.
The group has liabilities amounting to S$371.5 million among 58 creditors, including Singapore banks DBS, OCBC and UOB, automotive finance companies and car distributors.
In late November, the group first announced it was running into financial difficulties, with the total number of related companies in the group at 18 and a declared debt of around S$300 million.
However in an supplementary affidavit on Dec 23, the group said the eight abovementioned companies would proceed with the application, while the other 10 companies would apply for moratoriums separately. The 10 entities include Shariot, Hamster Car Rental and Bayfront Autohub.
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It also revealed talks with investors based in Australia and Malaysia for a possible S$100 million investment to hive off car-sharing business Shariot as a joint venture.
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