Singapore-based commodity trader Agritrade International Pte Ltd, which has $1.55 billion due to creditors, has been placed under interim judicial management by a Singapore court, the firm’s Hong Kong-listed subsidiary said in a statement.
In a regulatory statement issued to the Hong Kong bourse late on Tuesday, Agritrade Resources Ltd said the court had dismissed an application by its controlling shareholder for a debt moratorium and appointed an interim judicial manager with limited powers from Feb. 14-19.
A judicial manager may be selected during a court hearing scheduled for Wednesday, two legal sources related to the case said.
In a court filing last month, Agritrade International, said its more than two dozen creditors included banks, private funds and commodity traders and it had received several letters of demand from various lenders.
Agritrade International’s chief executive, Ng Xinwei, had said it was aiming to restructure its debt and asked the court not to allow any of the creditors to begin legal proceedings.
Judicial management allows a financially distressed company to be restructured under court supervision.
The court filings seen by Reuters were part of the company’s application made in January.