Thakral Brothers Reschedules $800,000 Debt to Thakral Corp
Amount to be paid in three instalments by April 30 or earlier on same terms announced in March 2007
By EMILYN YAP 3 January 2009
Thakral Brothers (Private) Ltd, a company partly owned by the prominent Thakral family, has asked to reschedule the repayment of a debt exceeding $900,000 to Singapore Exchange-listed Thakral Corporation.
The Thakrals also founded Thakral Corp and some family members sit on its board. The outstanding debt, though not significant in size, draws renewed attention to past transactions between the two companies.
According to an announcement by Thakral Corp on Wednesday, Thakral Brothers was due to repay $986,692.26 that day. The sum was the last instalment in a series of debt repayments that began in March 2007.
However, Thakral Brothers had asked on Dec 12, 2008 to repay the last instalment by April 30, 2009. In line with this, Thakral Brothers made out a cheque for $186,692.26 to Thakral Corp a few days later, leaving $800,000 unpaid as at Wednesday.
Thakral Corp said in a statement yesterday that its directors have agreed to Thakral Brothers’ request. Thakral Corp accepted the payment of $186,692.26 and has allowed Thakral Brothers to settle the balance of $800,000 in three instalments by April 30 this year or earlier, on the same terms previously announced in March 2007.
Thakral Corp directors Kartar Singh Thakral and Inderbethal Singh Thakral are shareholders of Thakral Brothers. Neither of them took part in discussions and board meetings involving the debt rescheduling. Another Thakral Corp director and Thakral family member, Jasvinder Singh Thakral, similarly excluded himself from talks.
A statement by Thakral Corp in March 2007 revealed that Thakral Brothers owed $6,658,587.77, which excludes further interest, to Thakral Corp’s subsidiary Thakral Corporation (HK).
The debt arose as Thakral Brothers and its subsidiaries sourced consumer electronic products and textiles from Thakral Corp and its subsidiaries. Thakral Brothers incurred substantial trade receivables and was made to repay the debt in eight instalments from March 2007.
The Thakrals are a well-known family on Singapore’s corporate scene. Nothing has been said about why Thakral Brothers had to reschedule the debt repayment. ‘It’s an indication of the times,’ said a market observer.
Thakral Corp’s major shareholder Hong Leong Asia (HLA) has declined to comment on the debt rescheduling. But yesterday’s announcement indicated that board representatives from HLA’s indirect subsidiaries disagreed with Thakral Brothers’ request.
HLA has been embroiled in a tussle to remove Mr. Kartar Singh from the board of Thakral Corp and to prevent the consumer electronic distribution company from shifting its focus to real estate. Thakral Corp shares rose half a cent to close at six cents yesterday.
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Thakral Brothers Reschedules $800,000 Debt to Thakral Corp
Amount to be paid in three instalments by April 30 or earlier on same terms announced in March 2007
By EMILYN YAP
3 January 2009
Thakral Brothers (Private) Ltd, a company partly owned by the prominent Thakral family, has asked to reschedule the repayment of a debt exceeding $900,000 to Singapore Exchange-listed Thakral Corporation.
The Thakrals also founded Thakral Corp and some family members sit on its board. The outstanding debt, though not significant in size, draws renewed attention to past transactions between the two companies.
According to an announcement by Thakral Corp on Wednesday, Thakral Brothers was due to repay $986,692.26 that day. The sum was the last instalment in a series of debt repayments that began in March 2007.
However, Thakral Brothers had asked on Dec 12, 2008 to repay the last instalment by April 30, 2009. In line with this, Thakral Brothers made out a cheque for $186,692.26 to Thakral Corp a few days later, leaving $800,000 unpaid as at Wednesday.
Thakral Corp said in a statement yesterday that its directors have agreed to Thakral Brothers’ request. Thakral Corp accepted the payment of $186,692.26 and has allowed Thakral Brothers to settle the balance of $800,000 in three instalments by April 30 this year or earlier, on the same terms previously announced in March 2007.
Thakral Corp directors Kartar Singh Thakral and Inderbethal Singh Thakral are shareholders of Thakral Brothers. Neither of them took part in discussions and board meetings involving the debt rescheduling. Another Thakral Corp director and Thakral family member, Jasvinder Singh Thakral, similarly excluded himself from talks.
A statement by Thakral Corp in March 2007 revealed that Thakral Brothers owed $6,658,587.77, which excludes further interest, to Thakral Corp’s subsidiary Thakral Corporation (HK).
The debt arose as Thakral Brothers and its subsidiaries sourced consumer electronic products and textiles from Thakral Corp and its subsidiaries. Thakral Brothers incurred substantial trade receivables and was made to repay the debt in eight instalments from March 2007.
The Thakrals are a well-known family on Singapore’s corporate scene. Nothing has been said about why Thakral Brothers had to reschedule the debt repayment. ‘It’s an indication of the times,’ said a market observer.
Thakral Corp’s major shareholder Hong Leong Asia (HLA) has declined to comment on the debt rescheduling. But yesterday’s announcement indicated that board representatives from HLA’s indirect subsidiaries disagreed with Thakral Brothers’ request.
HLA has been embroiled in a tussle to remove Mr. Kartar Singh from the board of Thakral Corp and to prevent the consumer electronic distribution company from shifting its focus to real estate. Thakral Corp shares rose half a cent to close at six cents yesterday.
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