The moratorium extension is effective until 31 January 2020 under Section 211B of the Singapore Companies Act

The tumultuous state of Singapore-based e-commerce honestbee finally reaches a temporary settlement with the approval of moratorium extension until 31 January 2020. The company said it will be a part of the company’s first step in restructuring.

The moratorium was granted under Section 211B of the Singapore Companies Act.

In the moratorium period, the company said that it will continue its business operations. The company will be providing all stakeholders with details of a suitable scheme of arrangement shortly.

In the meantime, honestbee reveals in its official statement that the company will be focussing on its long-term strategy of bolstering its core grocery business in Singapore and relaunching its next-gen retail store habitat by honestbee. It will be followed by the plans to restore its regional businesses through partnerships and joint ventures.

“A successful recapitalisation and restructuring of the business will set a strong path of recovery for the company. This is necessary to ensure that we have the right structure in place moving forward so that we can better serve our customers across Asia. We would not be able to get here without the support of our creditors, and the efforts put in by our legal and financial advisors,” said Lay Ann Ong, CEO, honestbee.

Also Read: [Updated] Honestbee describes CEO Joel Sng departure as resignation, names replacement

Lay Ann Ong took over from interim CEO Brian Koo, the grandson of South Korean tech giant LG founder. Koo replaced Joel Sng, who left the company in May this year.
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In the past year, honestbee has gone into multiple crises with the shut down of its operations in the Philippines, Indonesia, and Hong Kong. They have also suspended food-delivery in Thailand.

However, honestbee has had no issues raising money, having snagged US$46 million over the past three years. An article by TechCrunch emerged later, reporting a burn rate of US$6.5 million per month.
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Photo by Damla Özkan on Unsplash

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