SINGAPORE (May 18): Swee Hong, the civil engineering contractor which has been taken to Court by several of its creditors over delayed payments, has agreed to sell the rights to build, manage and operate North Coast Lodge foreign workers’ dormitory to S11 Capital Investments for $23.8 million.

In February, Swee Hong had filed an application in the High Court to propose a debt restructuring plan for three of its creditors - United Overseas Bank, the Building and Construction Authority of Singapore, and ACL Construction.

As part of the plan, Swee Hong said it would pay its creditors using proceeds from the sale of North Coast Lodge. S11 Capital is a locally incorporated private limited dormitory operator which has been in operations since 2011.

Swee Hong has cited late collections from completed projects and the delay in obtaining the Temporary Occupation Permit for the dormitory as reasons for its cash flow problems, among others.

Situated at 300 Admiralty Road West, North Coast Lodge is built on a 49,685 sqm site and comprises eight blocks of four-storey walk-up buildings with a total capacity of 9,000 beds, a two-storey ancillary administration building, with single-storey laundry building and an electrical sub-station and refuse centre.

The proposed disposal will result in a loss of $38.5 million for Swee Hong.

Shares of Swee Hong have been suspended from trading since Feb 11. The stock last closed at 12.6 cents on Feb 5.