Image Source: AsiaOne
SINGAPORE - Troubled retail start-up Honestbee has submitted an application to the High Court to commence a court-supervised restructuring process as it seeks six months of reprieve from creditors it owes over US$180 million (S$247.7 million) to. The application was submitted with the intention of proposing a scheme of arrangement to restructure its liabilities and to seek a moratorium against enforcement actions and legal proceedings, Honestbee said in a statement on Friday (Aug 2). The firm's actions were taken to "protect and preserve the value of its businesses while it restructures its operations across Asia", it added. Honestbee confirmed an earlier Business Times (BT) report on Friday that it owes over US$180 million, and that its major creditors are its convertible noteholders, which include its key backer Formation Group and associates of Mr Brian Koo, who is Formation Group’s founding partner and Honestbee chairman. It also confirmed it laid off 38 employees in Singapore this week, as reported by BT. The affected employees are those working in operations and engineering, Honestbee told The Straits Times.