[SINGAPORE] A group of companies that include Autobahn Rent A Car and car-sharing service Shariot have filed an application for a High Court moratorium that could prohibit winding-up resolutions, among other things, for a period of six months as they seek a scheme of arrangement. Since news of the group’s financial trouble first surfaced on Tuesday (Nov 25), the total number of companies involved has increased to 18 from nine, and total debts across the group are around S$304.2 million, up from around S$180 million.

Sanjay Kumar Rai, an appointment holder and minor shareholder in nine of the companies, on Friday applied to the High Court of Singapore for a moratorium pursuant to the Insolvency, Restructuring and Dissolution Act.

A 30-day suspension automatically came into force upon the application, but Rai had applied for a six-month moratorium. A case conference has been scheduled for Dec 2, at 9.30 am.

In his affidavit, Rai said that the group – which operates vehicle leasing, rental and fleet management businesses – is now encountering difficulties as its expansion had not been matched by demand for its services. He also cited increased operating costs.

The group intends to propose a scheme of arrangement to creditors to restructure its debts and continue its business while honouring the arrears.

Rai added that he is “confident that a scheme of arrangement is a sustainable alternative to an insolvent liquidation, as it can reverse Autobahn’s financial plight without prejudicing its creditors”.

The document also named the group’s creditors. DBS is key creditor, with the group owing the bank a total of S$94.8 million. Motor loan company Teck Wei Credit is owed S$70 million;

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