07-09-2011, 02:51 PM
borders would have been a good asset for popular to acquire.
Borders placed under judicial management
Steps taken to control costs including negotiating to halve its S$550,000 rent at Wheelock
by Tanya Fong
01:29 PM Sep 06, 2011
SINGAPORE - The High Court has placed Borders under judicial management for six months.
It was revealed in court that Borders had taken several steps to improve its financial situation, including negotiating the sale of Borders or its assets to Popular Holdings, and negotiating with Wheelock Properties to halve its rent at Wheelock Place from S$550,000 per month to S$275,000.
Under judicial management, Borders cannot be sued by any of its creditors. The company will explore options, such as talking to potential buyers to prevent winding up.
Borders is represented by law firm Allen & Gledhill. Said its leading counsel Edward Tiong: "There is still hope the name of Borders will continue as it has sentimental value for Singaporeans."
The company is also in negotiations REDgroup Retail - its parent company in Australia - to obtain a formal release from a A$2.5-million (S$3.2-million) loan from REDgroup.
Borders' fate was tied up with REDgroup's as the latter had become insolvent and placed under voluntary administration in Australia in February this year. According to court documents, this resulted in Borders "no longer being able to leverage on the economies of scale, established relationships or general advantages of operating as part of a larger group, as it previously had".
Borders will also be structuring a scheme of arrangement such that its employees, gift card holders and other creditors will be paid should its debt to REDgroup be written off and when it receives part of the proceeds from the S$2.15 million in rental deposits for its Wheelock and Parkway premises.
Borders placed under judicial management
Steps taken to control costs including negotiating to halve its S$550,000 rent at Wheelock
by Tanya Fong
01:29 PM Sep 06, 2011
SINGAPORE - The High Court has placed Borders under judicial management for six months.
It was revealed in court that Borders had taken several steps to improve its financial situation, including negotiating the sale of Borders or its assets to Popular Holdings, and negotiating with Wheelock Properties to halve its rent at Wheelock Place from S$550,000 per month to S$275,000.
Under judicial management, Borders cannot be sued by any of its creditors. The company will explore options, such as talking to potential buyers to prevent winding up.
Borders is represented by law firm Allen & Gledhill. Said its leading counsel Edward Tiong: "There is still hope the name of Borders will continue as it has sentimental value for Singaporeans."
The company is also in negotiations REDgroup Retail - its parent company in Australia - to obtain a formal release from a A$2.5-million (S$3.2-million) loan from REDgroup.
Borders' fate was tied up with REDgroup's as the latter had become insolvent and placed under voluntary administration in Australia in February this year. According to court documents, this resulted in Borders "no longer being able to leverage on the economies of scale, established relationships or general advantages of operating as part of a larger group, as it previously had".
Borders will also be structuring a scheme of arrangement such that its employees, gift card holders and other creditors will be paid should its debt to REDgroup be written off and when it receives part of the proceeds from the S$2.15 million in rental deposits for its Wheelock and Parkway premises.