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Honestbee gets 30-day interim moratorium extension from Singapore court
SINGAPORE — Troubled grocery start-up Honestbee was granted another month of court protection, so that it can improve its application to seek a six-month debt moratorium from creditors.
The High Court gave Honestbee until 4 October to present more details for the moratorium application, the company said in a statement on Tuesday night (27 August). The company was granted an automatic 30-day court protection when it filed the application on 1 August.
The High Court made the decision after it held a hearing on Tuesday for the application. The next hearing is scheduled for 30 September.
According to an affidavit filed on 22 August, Honestbee owes its 20 largest unsecured financial and trade creditors over US$277 million (S$385 million).
The affidavit also showed that some of the creditors, including Benjamin Lim Jia-Rong and LHN Space Resources and MOS Foods Singapore, have filed affidavits to oppose Honestbee’s application for a debt moratorium.
Honestbee said in the statement that the scheme of arrangement is the first step in restructuring its debts, and will allow creditors to achieve a better recovery.
“If the moratorium is not approved, Honestbee will have to review the company’s financial position and approach the various financial creditors for an alternative bail-out package,” it said.
“The liquidation option for Honestbee will result in all creditors recovering little to no money.”
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Troubled Honestbee plans to open Habitat concept stores in S Korea, Malaysia and Taiwan
Honestbee appoints Ong Lay Ann as CEO; co-founder Jonathan Low resigns
