HTL International have submitted an application for bankruptcy. As reported by straitstimes.com, the home furnishings manufacturing company, headquartered in Singapore, is rather close to collapse allegedly. Reportedly, HTL do not manage to face up to the market crisis brought about by Covid-19 detrimental effects.
HTL International have filed an application for bankruptcy
The company, founded in 1976, currently hires over 5,000 employees all around the world. According to Singapore’s information website, the firm’s financial exposure before banks amounts to 46 million dollars apparently. Right a bank reportedly urged the business to pay off the whole of its debt, which amounts to 7.8 million dollars; in so doing, they decidedly made the company’s breakdown faster. Yet, for the time being, HTL International cannot settle their debt. Moreover, financial aid from the Government would not support the business either. Director Robert Chew has clarified that HTL International will not be able to get any supporting public funds, related to Coronavirus health emergency. Why not? Apparently, the enterprise is not entitled to because it does not enter on the list of protected manufacturing categories.
Application for bankruptcy
According to the Asian information blog itself, last April 24th corporate counsels allegedly submitted an application for judicial management. Reportedly, on Monday, the High Court appointed Deloitte & Touchee as official receivers. Most likely, the hearing is due to be scheduled for the beginning of June. While speaking to The Straits Times, Tan Wei Cheong, Deloitte’s partner, publicly stated HTL International had been going through, for a while, “a few short-term financial difficulties” owing to delay in collecting payments from some of their clients, both in Europe and in the United States. “We do not expect the group to stop working overall – he wrapped up –. Such is our plan actually: to find a suitable way to support and foster the group’s reorganization. Aiming at its restructuring, we therefore need to select a white knight”.