In Singapore, deadlock continues between oBike liquidators and investor over debt info

Money - International

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Thursday, 24 Jan 2019 8:13 AM MYT

SINGAPORE, Jan 24 — The deadlock between oBike’s liquidator and the bicycle-sharing firm’s investor drags on, with the investor saying that the information he has received is not enough to take the repayment process forward.

In a meeting with oBike’s creditors yesterday, liquidator FTI Consulting’s senior managing director Joshua Taylor revealed that his company provided Costa Rican investor Oscar Moises Chaves with "information regarding claims against (oBike)” the same day. The information was requested when they met Chaves for the fourth time on Jan 16.

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However, Chaves said that he was again provided with the summary of monies owed without names or documents to back up the claims.

"I asked for invoices… The summaries, they just say creditors are owed (S$500,000), users (are owed) S$8 million (RM24.3 million). How do you pay that? I just want to see the documents,” Mr Chaves told TODAY when contacted over the phone after the meeting.

He was not present at the meeting held in the Shine Auditorium at Shaw Tower, which lasted slightly under an hour with fewer than 20 creditors present.

The liquidators first provided him with information in November last year after a third meeting. Before that, both parties met in October after Chaves successfully acquired the company.

Last week, TODAY reported on Chaves acquiring the embattled bike-sharing company and how his plans to clear its debts have hit an impasse due to a lack of documentation.

A day after the news broke, FTI Consulting responded with a media statement stating that it will supply the documents needed.

Chaves questioned: "If I tell you that you owe me S$10 million, and I make you an Excel spreadsheet with the supposed total of each claim, is it enough for you to spend S$10 million of your personal money?”

At the first meeting held in August last year with creditors, Taylor said that the liquidators are looking to claw back S$10 million from oBike’s Hong Kong unit which has been inappropriately used as "prepayments”.

Taylor, however, said at yesterday’s meeting that there have not been "significant delays” by the liquidators in providing the information Chaves requested.

He said FTI consulting had sent Chaves a draft agreement, which contains details on the repayment of outstanding monies to deposit holders and creditors.

Taylor added that the liquidators are "working actively” with Chaves to finalise the terms of the agreement.

Once a deal is inked and that money has been received, Taylor foresees a two-month waiting period before liquidators can start disbursing monies to deposit holders and creditors.

The liquidators will be asking creditors to file claims, reviewing and approving those claims before declaring a dividend during the two-month period, Taylor noted.

Chaves confirmed with TODAY that he has received the draft agreement.

However, he said that there was no need to negotiate the terms of the agreement because he "just needs to receive the appropriate bill” for him to make payments.

oBike Singapore’s accounts

Assets:

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