TT bond holders push for court - approved plan

SINGAPORE

The plan also imposed a complete moratorium on any action against the firm by the debtors until the scheme ends.

The group is made up of institutions and individuals that hold TT’s medium term notes Series 19 which were bought through OCBC Bank.

According to documents seen by MediaCorp, the group explained that if the scheme of arrangement was overturned, the company will succumb to the financial pressures from legal proceedings.

This may result in all noteholders losing their investments an est imated $50 million in all.

They also believe that the scheme is the best option for TT and its creditors, compared to taking the liquidation or judicial management route.

In a letter sent to OCBC’s lawyers Rajah and Tann, the group explained that if the scheme is implemented, the returns to the creditors will be higher compared to liquidation of the company.

This is in addition to TT’s financial position, which has become profitable after much cost-cutting under the scheme.

Among the institutions that form the group of 24 include the Singapore Teachers’ Co-Op Society, the Singapore Police Cooperative Society and the NTUC Thrift and Loan Co-operative.

In response, Rajah and Tann said that “it has made its evaluation and formed its view of the scheme objectively and responsibly”.

Sim Law Practice is acting on behalf of the noteholders.

OCBC Bank had filed an appeal last month for the scheme of arrangement to be overturned.— A group of 24 bond holders of distressed firm TT International has appealed to OCBC Bank to accept a High Court-approved scheme for the company to manage its debts.

Jo-ann Huang

Homegrown Akira could face Liquidation

Jo-ann Huang

joannhuang@mediacorp.com.sg

SINGAPORE

But there are no Akira products in this year’s goodie bags, as the company’s fate hangs in the balance — with a pivotal court session in eight days.

MediaCorp has learnt that a court hearing has been scheduled next Wednesday, which could determine the fate of Akira and its beleaguered parent TT International, a consumer electronics distribution firm listed on the Singapore Exchange.

TT’s problems began when credit facilities totalling $332 million were pulled during the height of the financial crisis, forcing it to call for a standstill of payments.

As losses chalked up, TT sought to restructure its liabilities. In March, the High Court approved a scheme — overruling the objections of five banks, including OCBC, and building firm Ho Lee Construction — which would allow TT to manage the debts and impose a complete moratorium on any action against the firm until the scheme ends.

OCBC Bank and Ho Lee Construction subsequently appealed against the High Court ruling — and they will press their case next week. OCBC is claiming $21.7 million, while Ho Lee is claiming $22 million over construction works for an uncompleted 1.3 million square feet warehouse and retail complex beside Jurong East MRT Station.

If the Court of Appeal — the highest court in the land — rules in favour of OCBC and Ho Lee, TT will face liquidation, which could possibly spell the end of its house brand of consumer electronics, Akira.

TT was founded in 1984 by the husband-and-wife team of Mr Sng Sze Hiang and Ms Julia Tong, who built up the supply-chain specialist into one of Singapore’s largest exporters of consumer electronics. When contacted by MediaCorp,

Ms Tong declined to comment on the case.

But she said: “Having worked very hard for over 25 years to build up a Singapore brand, which is recognised in over 60 countries, for the sake of Akira and the 1,700 staff of TT who have sacrificed so much, we can only hope to be given a chance to continue growing.”

TT’s restructuring over the past two years — which incurred over $30 million in restructuring expenses and professional fees — has come at a heavy personal cost for the founders, too.

The couple signed personal guarantees of about $68 million in 2008 to obtain additional credit facilities to keep the company going, according to the company’s financial statement last year.— Homegrown appliance brand Akira has been a loyal sponsor of the National Day Parade for the past eight years, where spectators received Akira freebies such as handheld fans.

Well is has shown...(+half a ct) getting better by day, Err....by wk maybe by mth

This one is interesting. (Just forming my opinion and sharing info)