SINGAPORE (Aug 17): Serrano, the provider of interior fit-out solutions for the residential, hospitality and retail sectors, says its wholly owned subsidiary, Serrano Holdings, has received a writ of summons on Aug 2, from Maxcon Enterprise’s lawyers.

The writ of summons were filed with the High Court of the Republic of Singapore for the claims of over $715,000 for goods that were sold and delivered by Maxcon to Serrano Holdings in 2015 and 2016. There was also a claim for the interest for the sum owed, at the rate of 5.33% per annum, and the costs for the legal action.

In a filing on Tuesday night, Serrano says it is “currently seeking professional advice on the matter and will keep its shareholders updated on material developments”.

Prior to this announcement, Serrano, its subsidiary Serrano Holdings, its directors Chia Wing Hock and Chia Wing Keong had collectively received letters of demand from their lenders IFS Capital, RHB Bank, The Bank of East Asia, United Overseas Bank and Ethoz Capital.

Separately, the group has received approval from the Singapore Exchange for a two month extension to October 14 to announce its half year financial results.

On July 26, Serrano had applied to the exchange for the time extension, after it had been granted a stay of proceedings by the High Court to Oct 22, while Serrano continued its discussions with potential investors and its creditors on a potential scheme of arrangement to rehabilitate its financial position.

During the court hearing on Aug 22, the group is expected to produce a scheme paper - with the assistance of its independent financial adviser and lawyers – which details the terms of the proposed scheme for the court’s consideration.

As the hearing could potentially affect the 1HFY2016 financial results of the group to be announced, the time extension would allow the group to take the outcome of the court hearing into consideration when preparing its half year financial results.

Furthermore, the group’s Chief Financial Officer, Kung Guan Seng, had tendered his resignation on July 27. The two month extension would also allow the group’s newly appointed group financial controller, Yap Keck Meng, to familiarise himself with the operations of the group’s accounting and finance team, the group’s operating and financial policies as well as the half year results to be announced.

Shares in Serrano are trading at 1.2 cents.