3% cash payout under debt scheme beats liquidation: honestbee ex-chairman

Singapore

ASKING honestbee's creditors to become shareholders could be a tough sell. But Brian Koo, the startup's key backer who is a scion of Korea's LG Group, believes that the 3 cents on the dollar cash payout makes restructuring a more viable option for creditors over liquidation.

Mr Koo was commenting on honestbee's proposed scheme of arrangement, under which some 800 creditors will be repaid 3 per cent of what they are owed in cash. The remaining 97 per cent will be repaid via the issuance of shares in a new Singapore entity that will own honestbee's assets.