News Reader

Honestbee Granted 4-Month Debt Moratorium, To Focus On Grocery Biz In S'pore For Now

Troubled firm honestbee had filed for a six-month debt moratorium on August 1 and was later granted a 30-day extension to make its case to court.

At a closed hearing yesterday (Sept 30), the court granted the firm a four-month debt moratorium to 31 January 2020.

During these four months, creditors are not allowed to take any legal actions against the firm as they focus on restructuring its business to pay off its debts.

Most recently, it was reported that honestbee owed 217 ex-employees salaries of almost $1 million.

Honestbee said that it is already working on a “feasible payment schedule” with affected staff.

It added that this payment will be done in five instalments, and one ex-employee told The Straits Times that the first instalment was duly received on Monday.

According to an affidavit filed in court on September 20,¬†honestbee has secured funding to pay off its “small creditors”, who are owed $500 or less.

After excluding payments to 1,140 small creditors, honestbee has an outstanding debt of $286 million.

Focusing On Core Grocery Biz

In a company statement, honestbee CEO Ong Lay Ann said that a successful restructuring will help to recover its struggling business and gain a solid footing again.

If successful, potential investors have expressed their interest in partnering honestbee to operate in Japan, Thailand, Malaysia and the Philippines.

For now, honestbee said that it will focus on its core grocery business in Singapore, namely its grocery delivery service and supermarket habitat.

It had previously discontinued its food delivery and laundry services in May to reduce operating costs.

In addition, honestbee also has plans to restore its regional business through partnerships and joint ventures.

According to The Straits Times, honestbee intends to propose a scheme to transfer its business and assets to a new Singapore-incorporated company, which would be wholly owned by an undisclosed company in the United States.

Featured Image Credit: honestbee

 

Subscribe to Vulcan Post Newsletter

Stay updated with our weekly curated news and updates.
 
Read more about our privacy policy here.