SMRT-backed Strides DST under insolvency for $37.1m debt

The Strides DST team / Photo credit: Strides DST

Strides DST, also known as EVCo, is under insolvency due to a S$50 million (US$37.1 million) debt, reported The Straits Times.

OCBC Bank, as the main creditor, is owed S$47.6 million (US$35.3 million) by Strides DST, according to a document obtained by The Straits Times. The van leasing firm also has dues to SMRT, one of its key shareholders, worth roughly S$39,000 (US$29,000), while several entities associated with Strides are owed around S$590,000 (US$437,000).

However, accounting and business advisory firm Baker Tilly, which was appointed as liquidator, said that Strides DST is in insolvent liquidation – a process done to close a company that cannot repay its debts. Currently, the company’s assets include its fleet of electric vans, which have already depreciated in value.

Stakeholders including OCBC Bank and SMRT gave no additional statements to The Straits Times, with OCBC Bank refusing to comment due to Singapore’s Banking Secrecy Act.

A creditor, wishing to remain anonymous, blamed “poor management, poor execution, and exploiting loopholes” for the current situation.

Strides DST is a joint venture between Singapore-based vehicle services provider Strides Mobility and Chinese fleet management firm DST. It provided EVs to corporate clients and offers other services like vehicle maintenance and decarbonization planning.

The development comes just months after the company’s ex-CEO Fuji Foo and ex-CFO Janice Low were arrested concerning a police investigation over irregularities in the business.

See also: Southeast Asian investors bullish on electric bikes, clean energy in 2024

Currency converted from Singapore dollar to US dollar: US$1 = S$1.35.