Singapore-based Honestbee, an online grocery and food delivery service provider, has filed an application with the country’s High Court to start a court-supervised restructuring process and get a reprieve from repaying its debt, which it told Business Times amounts to over US$180 million.
It has also laid off 38 employees in Singapore, the company told Today.
Photo credit: Honestbee
With the filing, the struggling startup aims to restructure its liabilities and to seek a moratorium against enforcement actions and legal proceedings, according to a statement.
In the statement, the company said that the supervised restructuring process is “in the best interest of Honestbee’s stakeholders,” as it will be able to reevaluate its business and bring down the cost structure without interference.
The development comes at a time when Honestbee is facing cashflow issues, people familiar with the matter told Tech in Asia. The startup has been late in paying employees’ salaries for two straight months, and it’s also in debt to its suppliers, the sources added.
In response, Honestbee said it “is unable to comment on the terms of the Scheme of Arrangement.” It has been working with its legal advisor Oon & Bazul and independent financial advisor DHC Capital to “provide the creditors with a fair and workable scheme.”
The move comes after the appointment of its new CEO, Lay Ann Ong, and the departure of co-founder and chief technology officer Jonathan Low.
Editing by Terence Lee and Eileen C. Ang
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