Singapore durian supplier Nutryfarm placed under judicial management

SINGAPORE (THE BUSINESS TIMES) – The High Court of Singapore has granted an application to place Nutryfarm International under judicial management, the company announced in a bourse filing on Tuesday (June 28).

Mr Chan Yee Hong of liquidator Nexia TS Risk Advisory has been appointed as the mainboard-listed durian and health foods distributor’s judicial manager.

The application for judicial management was filed by Nutryfarm’s creditor, Corpbond IV, on May 10 this year following a spate of legal events regarding Nutryfarm’s loans owed to Corpbond.

Both parties were previously in talks to potentially restructure third-party loans that amounted to about HK$126.9 million (S$21.9 million) as at June 30 last year. The loans were then set to expire between March and November this year.

In a Jan 20 response to Singapore Exchange queries this year, Nutryfarm said it had yet to reach any definitive agreement with Corpbond on a restructuring.

Its board also disclosed that pre-action discovery proceedings were commenced against the company on Dec 14 last year, by an individual claiming to have provided funding for some loans that were later novated to Corpbond.

Separately, Corpbond further issued letters of demand to Nutryfarm’s subsidiary LottVision and its corporate secretarial services provider, for the group to pay outstanding sums of $3.9 million and US$271,849 (S$377,272) that were due on March 31 this year.

This money was part of the principal amount of a loan, as well as the interests accrued, that Nutryfarm took from Corpbond and Furong Investments in 2017.

Shares of Nutryfarm have been voluntarily suspended since April 11 this year.