Honestbee gets 30-day extension on interim moratorium
Local grocery start-up Honestbee was granted a 30-day extension to its reprieve from creditors by the High Court yesterday as the company looks to restructure its debt.
The firm was granted an automatic 30-day court protection when it filed for a six-month debt moratorium on Aug 1.
Yesterday's 30-day extension gives Honestbee until Oct 4 to present the court with its proposed scheme of arrangement.
Chief executive Ong Lay Ann said its inability to get a six-month moratorium granted yesterday was because several creditors opposed the application.
"For us to restructure the company, given the number of creditors and complexity of the case, 30 days is insufficient," added Mr Ong.
He said that at least four to six months would be required for Honestbee to manage its creditors and propose a viable scheme of arrangement.
The firm owes its 20 largest unsecured financial and trade creditors over $277 million, noted an affidavit filed last Thursday. This corrected the list in its Aug 1 application.
Court documents show that some creditors, including a Mr Benjamin Lim Jia-Rong and LHN Space Resources, have filed affidavits to oppose Honestbee's application for a debt moratorium.
LHN Space Resources is the landlord of Honestbee's Habitat premises at 34 Boon Leat Terrace.
Mr Lim is owed $3.8 million, while LHN Space Resources is due a payment of around $91,000, according to the affidavit filed by Mr Ong on behalf of Honestbee last Thursday.
LHN Space Resources is also holding a security deposit of nearly $490,000, the filing noted.
Financial and trade creditors accounting for about 85 per cent of the company's debt have indicated their support for the debt moratorium, Mr Ong noted.
He believes the moratorium is the best option for creditors as they would not be able to get their money back if the firm is liquidated.
Honestbee chairman Brian Koo is the company's only secured creditor so he would have first rights on its assets.