EXCLUSIVE: TEAC Distributor Facing New Problems
Shares in TTA Holdings have slumped 26% on the ASX following the collapse of the Big Box Retailer in Singapore.
The distributor of the TEAC brand in Australia is struggling to survive is hoping to restructure their parent Companies Singapore retail operation which is 51% owned by TT International.
Earlier this year TTA Holdings the distributor of TEAC products in Australia, moved to offload assets, to restructure their Australian operation however questions were raised at the time as to whether the proposed course of action would get approved and whether, the acquisition of share is a move to establish a new Chinese funded legal network in Australia.
In a statement to the ASX the Company said at the time that they were selling shares in TTA to Jingyi Group Co Limited, a Chinese equity fund so that TTI the holding Company, is no longer a shareholder in TTA.
They also moved to transfer ownership of a Victorian, freehold commercial property owned by their subsidiary, TEAC Australia Pty Ltd to TTA’s largest shareholder, TT International Limited.
Now receivers have been appointed to its 51 per cent-owned subsidiary, Big Box Pte Ltd in Singapore.
The company, which is hoping that they can restructure the business under a scheme of arrangement. Ernst & Young Solutions have been appointed as administrators for OCBC as security trustee for the lenders under the BBPL facility.
TT International said that it is currently in talks with lenders to obtain funding of up to S$380 million needed to refinance and repay the BBPL facility and its other payment obligations.
On Sept 7, TT International said the Singapore High Court had granted its moratorium application to restrict all creditors from taking further action against the company until Feb 11, 2018.
The Singapore High Court granted the moratorium application and ordered, amongst others, no appointment shall be made of a receiver or manager over any property or undertaking of the company, the company said.
Rent arrears amounted to over S$50.75 million.
In Australia serious questions were raised earlier this year after we revealed that the Board of TTA the owners of TEAC Australia did an about face and asked the ASX to end the suspension of its securities so that they could renter the Australian market.
Now the Company is back operating as TEAC Australia.