Singapore — Distressed businessman Terence Loh, who co-founded Novena Global Healthcare (NGH), seeks interim order to avoid bankruptcy, The times of the straits (ST) reported Thursday (April 29).
The amount owed to five banks, owing to a personal guarantee for loans held by NGH, has reached S $ 70 million.
On April 15, his bankruptcy case was adjourned for the third time, after saying he needed more time to work out a payment plan from Maybank, one of NGH’s creditors.
And on Thursday (April 29), it was again adjourned when Mr. Muralli Rajaram, his lawyer, informed the court of Mr. Loh’s request for an interim order.
The interim order requested by Mr. Loh will be heard next month. She will put an end to all lawsuits against her, including bankruptcy proceedings, while the businessman comes to terms with his creditors for repayment plans.
If Maybank, Citibank, Standard charter Bank, DBS Bank and UOB Bank, among other creditors, accept its settlement agreements, the High Court will appoint an agent for the implementation of its proposals.
However, if they refuse his proposal, the court will set aside the interim order.
ST quoted Mr. Loh as saying Thursday that he “is actively developing a plan focused on recovery of value with various stakeholders. The transaction contains sensitive details and is highly confidential.”
Maybank sought to recover more than S $ 3 million from Mr Loh, who is the bank’s loan guarantor allowed the Singaporean subsidiary of Novena Global Healthcare Group (NGH).
In November 2020, Maybank initiated bankruptcy proceedings against Mr. Loh.
In January of this year, Mr Loh asked creditors for more time to set up a repayment program.
He and his cousin Nelson Loh, co-founder of NGH, were two of the three directors of the Bellagraph Nova Group, which was reportedly a serious contender for the takeover of English Premier League football club Newcastle United in August of last year.
In January, Mr. Nelson Loh, 41, was unable to pay more than $ 14 million in unpaid debts he owed to DBS Bank. The High Court of Singapore has since declared him bankrupt.
Additionally, Novena Global Healthcare Group faces charges of using unauthorized signatures from the accounting firm Ernst & Young in its financial statements.
The cousins have since separated their business interests.
ST reports that Mr. Terence Loh has said he is trying to recoup the value of his other businesses so he can pay his creditors. It is reportedly exploring the possibility of selling a chain of clinics under a subsidiary of Novena Global Healthcare Group, Novu Aesthetics.
However, all five of Novu Aesthetics’ outlets were suddenly closed in March. There are hundreds of patients who still have prepaid treatment packages that they haven’t claimed yet, ST added.
The clinics were reportedly closed due to a lack of funds, with some clinic staff facing back pay.
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