The Working Capitol, owing S$13.2m, applies for debt restructuring
CO-WORKING operator The Working Capitol has filed for a court-supervised restructuring, amid debts of S$13.2 million owed to creditors excluding related parties, The Business Times understands.
Including loans from its co-founders, related parties and intercompany entities, as well as tenant deposits, The Working Capitol's total debt is understood to amount to about S$26 million. There are more than 170 creditors.
The six-year-old startup has been unable to reach an agreement with two of its landlords, Crocodile International and AIA Singapore, to renegotiate about S$610,000 worth of rental payments.
BT understands that the company owes Crocodile International and AIA Singapore sums of over S$230,000 and S$380,000 respectively as at the end of May. Crocodile International is a secured creditor, with a banker's guarantee for over S$380,000. AIA is an unsecured creditor.
When contacted, AIA declined to elaborate on the matter, citing that legal proceedings are underway. Crocodile International could not be reached.
Founded by siblings Ben and Saranta Gattie in 2015, The Working Capitol occupies 117,000 sq ft of space across 16 shophouses in Keong Saik Road. Besides co-working spaces, it also houses food-and-beverage outlets such as Shake Shack and Meta.
Commenting on the arrears owed to the two landlords, Mr Gattie told BT: "We had proposed a payment plan for this so as to be able to provide relief to our members and community, but this was not accepted by our landlords."
The Working Capitol had put out a statement on June 24 about the restructuring effort. In it, it said: "Having not received any rental relief or accommodation from some of their landlords during these trying times, (The Working Capitol is) taking urgent measures to protect the business while at the same time bridging the gap between stakeholders."
Asked whether The Working Capitol is looking to restructure the full sum of S$26 million, Mr Gattie replied: "At this stage, this information is confidential as it involves a number of parties. The restructuring plan will be a holistic one to ensure that it is viable and allows the company to come out stronger from this process."
In the meantime, the company plans to continue operations at its Keong Saik location. Mr Gattie also hopes to evolve the business model "into an owner-operator one alongside aligned patient capital partners".
"We will continue to shape Singapore's most resilient and vibrant neighbourhoods through the adaptive re-use of conservation properties like we have done at Keong Saik," he said.
