SINGAPORE (June 30): International Healthway Corporation (IHC) on Wednesday night said it has made an application to the High Court of Singapore, to wind up IHC Management, a wholly-owned subsidiary of IHC.
The application was made on Tuesday under Section 254 of the Companies Act. The hearing date for the application has been scheduled for July 22.
Explaining the move, IHC said IHC Management owes it certain sums of money through inter-company loans, and has been appointed a receiver over monies owed to funds. IHC also said it applied to wind up the subsidiary to “protect its interests, in its position as a major creditor of IHC Management”.
On May 3, three funds – Enterprise Fund III, Value Monetization III, and VMF3 – appointed receivers over the share capital of IHC’s three wholly owned investment holding subsidiaries over a dispute on the outstanding amount due to the funds. The three subsidiaries were IHC Medical RE, IHC Management and IHC Management Australia.
On the same day, IHC applied to the Supreme court of Singapore to rescind or suspend the appointment, but the Court directed on May 4 that the application should be heard and determined on an inter partes basis on a date to be scheduled. The directive was made on the basis that the charged assets will not be imperilled and that the management of the charged assets should not be altered pending the hearing.
According to IHC’s 2015 annual report, the funds allege that IHC and its subsidiaries owe a total amount of $34 million, including outstanding interest of $7.9 million, as of April 7. However, as at Dec 31, the outstanding amount due to the funds that was recorded in IHC’s balance sheet was $5.26 million with no outstanding interest.
IHC added that the additional amounts claimed by the funds were not recognised in its financial statements as management, based on legal advice, believed there is no basis or merit to the claims.
IHC is warning its shareholders to exercise caution when trading in its shares.
At 11.16am, IHC shares are priced at 5.2 cents.