Yongnam Holdings, on Jan 25, announced that its moratorium applications have been accepted by the court. The applications were filed on Jan 20 and were filed under Section 64 of the Insolvency, Restructuring and Dissolution Act 2018. The company has been assigned the case numbers HC/OA 63/2023 and HC/OA 61/2023.
The moratorium applications filed by Yongnam Engineering & Construction Sdn Bhd and Yongnam Engineering Sdn Bhd’s have also been accepted by the court. The applications, which were filed under the Act’s Section 65, have been assigned the case numbers HC/OA 60/2023 and HC/OA 62/2023 respectively.
A case conference has been fixed at 3pm on Jan 27 at the Singapore High Court.
The moratoria come after Yongnam Holdings called for a suspension in the trading of its shares on Nov 23, 2022. The company called for the suspension at the same time after explaining the reasons behind its increased borrowings and other queries posed by the Singapore Exchange (SGX).
On Jan 19, Yongnam Holdings entered into a loan agreement as well as a conditional subscription agreement with UEM Assets. The agreements were said to help put the company in a position to secure infrastructural projects that have been delayed by the Covid-19 pandemic and are now recommencing.
Shares in Yongnam last traded at 2.6 cents before its trading halt on Nov 23, 2022.