Big Box - (Jurong Gateway) | U/C | 4Q 2013

[JediAlf]

Originally Posted by Lifestyle-1881

Yup... no work there for ages.
Wonder what happened?

The contractors pulled out and removed the cranes and construction machines from the site after May 2009. TT International ran into trouble with creditors.

This does not affect the Jurong Gateway plans. Tender to widen the roads and realign the roads has been tendered out.

[Lifestyle-1881]

Thanks for that JediAlf.

Originally Posted by JediAlf

The contractors pulled out and removed the cranes and construction machines from the site after May 2009. TT International ran into trouble with creditors.

This does not affect the Jurong Gateway plans. Tender to widen the roads and realign the roads has been tendered out.

[SonofaDude]

Originally Posted by kurakura

breeding site for mosquitoes

Sigh ... another potential dengue fever cluster

[mrtfreak]

Originally Posted by august5

The whole Jurong transformation coming to a halt?

Being an empty vessel isn't going to help it continue either. And besides, as Jedi has mentioned, it is not affected by the Big Box development.

[SonofaDude]

Looks like there won't be any progress for this site for a while more.

Title: Homegrown Akira could face liquidation
Source: TODAY
Author: Jo-ann Huang

Legal News Archive

SINGAPORE - Homegrown appliance brand Akira has been a loyal sponsor of the National Day Parade for the past eight years, where spectators received Akira freebies such as handheld fans.

But there are no Akira products in this year's goodie bags, as the company's fate hangs in the balance - with a pivotal court session in eight days.

MediaCorp has learnt that a court hearing has been scheduled next Wednesday, which could determine the fate of Akira and its beleaguered parent TT International, a consumer electronics distribution firm listed on the Singapore Exchange.

TT's problems began when credit facilities totalling $332 million were pulled during the height of the financial crisis, forcing it to call for a standstill of payments.

As losses chalked up, TT sought to restructure its liabilities. In March, the High Court approved a scheme - overruling the objections of five banks, including OCBC, and building firm Ho Lee Construction - which would allow TT to manage the debts and impose a complete moratorium on any action against the firm until the scheme ends.

OCBC Bank and Ho Lee Construction subsequently appealed against the High Court ruling - and they will press their case next week. OCBC is claiming $21.7 million, while Ho Lee is claiming $22 million over construction works for an uncompleted 1.3 million square feet warehouse and retail complex beside Jurong East MRT Station.

If the Court of Appeal - the highest court in the land - rules in favour of OCBC and Ho Lee, TT will face liquidation, which could possibly spell the end of its house brand of consumer electronics, Akira.

TT was founded in 1984 by the husband-and-wife team of Mr Sng Sze Hiang and Ms Julia Tong, who built up the supply-chain specialist into one of Singapore's largest exporters of consumer electronics.

When contacted by MediaCorp, Ms Tong declined to comment on the case.

But she said: "Having worked very hard for over 25 years to build up a Singapore brand, which is recognised in over 60 countries, for the sake of Akira and the 1,700 staff of TT who have sacrificed so much, we can only hope to be given a chance to continue growing."

TT's restructuring over the past two years - which incurred over $30 million in restructuring expenses and professional fees - has come at a heavy personal cost for the founders, too. The couple signed personal guarantees of about $68 million in 2008 to obtain additional credit facilities to keep the company going, according to the company's financial statement last year.

Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved

[SingaporeCity]

it was not very common in Singapore to have never built projects, or delayed projects.

But in recent years, it's getting more common when we have projects like South Beach, Scotts Tower, Sports Hub, Big Box, MediaCorp building either delayed or facing problems.

This is not a good sign.

[Mith252]

Yeah, but don't forget, our country just went through a financial crisis so things like these are expected to happen. Same thing happened to Singapore in the 1980s when a financial crisis happened then. We just hope that the BIG BOX project get picked up by some other company.

BTW, any statement from URA regarding this huge setback?

[Autobots]

Big Box project is restarted by a new white knight...


1
The Board of Directors of TT International Limited (the "Company") is pleased to announce that the
Company has today entered into a binding Heads of Agreement (the "Heads of Agreement") with Boustead Singapore Limited (“BSL”), setting out key terms of BSL’s proposed investment in Big Box Pte Ltd (“BB”), a wholly-owned subsidiary of the Company. A summary of the principal terms of the Heads of Agreement
follows.

Under the Heads of Agreement, the parties agree that:
1. the Company will transfer to BB all of its rights, title and interests in and to the plot of land (including the uncompleted development thereon) at Jurong East Street 11 (“Property”) in relation to which the Company has entered into a Building Agreement with the Jurong Town Corporation ("JTC"), for an agreed aggregate valuation of S$95 million (including stamp duty payable on the
transfer of the Property to BB);

2. Boustead Projects Pte Ltd, a subsidiary of BSL, will be appointed as the turnkey contractor to complete
the construction of the building on the Property, and BSL will finance the construction costs/progress
payments for such completion, at the estimated value of S$150 million based on the Company’s
existing plans;

3. BB will be capitalised at S$2 million with the balance of each parties’ investment (as set out in
paragraphs 1 and 2 above) reflected as shareholders’ loans to BB;

4. the Company and BSL will hold respective equity stakes in BB of 40% and 60% respectively; and

5. upon completion of the contruction of the building of the Property, the Company will lease the
building as master lessee from BB, for use as warehouse cum retail premises in accordance with the
requirements of the Building Agreement and the Warehouse Retail Scheme granted to the Company
through the Economic Development Board (“EDB”).

[Mith252]

Thank goodness!! Finally something is going to happen. So far, it just seems to be an agreement between companies. There seems to be no date on a continuation for the construction of the Big Box.

[SonofaDude]

Originally Posted by Mith252

Thank goodness!! Finally something is going to happen. So far, it just seems to be an agreement between companies. There seems to be no date on a continuation for the construction of the Big Box.

nope, things may not be happening so soon after all. Sigh ...


TT's woes get worse
by Conrad Raj conrad@mediacorp.com.sg
05:55 AM Sep 22, 2010

SINGAPORE - The woes of listed electronics goods distributor and retailer TT International appear to be getting worse as creditor DZ Bank, which is owed $25.69 million, joins two other holdout creditors, OCBC Bank and Ho Lee Contractors, in calling for a revision of the terms of settlement of its massive debts which amount to between $320 million and $360 million.

They also want TT to engage a new set of financial and legal advisors, as current advisor nTan Corporate Advisory is said to have a conflict of interest in acting for both the company and its two substantial shareholders, TT founders Julia Tong Jia Pi and her husband Sng Sze Hiang. The Court of Appeal, which set aside an earlier High Court sanction of the creditors' scheme of arrangement and called for a re-vote on the matter, has asked nTan to choose which of the two parties it wants to act for.

With the three holdout creditors owing a total of more than $103 million, the re-vote this Friday has little chance of succeeding as, unless one or all three change their minds and vote in favour, it must secure the approval of creditors holding more than 75 per cent of the company's debts.

In the meantime, the beleagured company is pleading with holdout creditor OCBC Bank to give its plan to restructure the company and pay off its 97 creditors a chance to succeed.

OCBC is owed $22 million while Ho Lee claims debts of $84 million. However, TT points out that based on work done on its Big Box retail-cum-warehouse project next to Jurong East MRT station, it owes the company no more than $17 million. But scheme manager nTan Corporate Advisory is said to have agreed to a sum of $22 million to cover loss of future earnings.

While OCBC has said that it never was its intention to wind up TT, sources said the bank is peeved as the Scheme is said to have favoured some shareholders like the Sngs and KBC Bank ahead of the other creditors.

In a letter, the bank said: "In OCBC's view, the terms of the Scheme in its current form do not strike the correct balance between the interests of the creditors and the interests of the shareholders and management."

In response, TT founders told Today, "In an effort to save the company, we may have made mistakes in the past but we can't rewind the clock and are truly sorry."

The company is trying to get an early resolution of its financial woes as professional fees incurred for the scheme of arrangement are costing it more than a million a month. Mr and Mrs Sng also said that they had sunk some $30 million of their own money in an effort to save the company.

While the company is trying to strike a conciliatory tone with OCBC, it is engaged in a war of words with Ho Lee, the contractor for the eight-story warehouse. It accused Ho Lee of having entered into a joint venture with a third party to the detriment of TT.

In the meantime, Boustead Singapore is said to have offered to develop the Big Box site, which cost the company some $45 million. "If this is rejected and if the Jurong Town Corporation takes back the site, then including other costs, TT will see $95 million going down the drain," said Mr Sng.

Should the scheme be approved, creditors could be getting back at least 70 cents to the dollar, while an unsuccessful outcome would see a return of between 7 and 13 cents to the dollar according to accountants PricewaterhouseCoopers and advisers nTan.

[Mith252]

Arrgh, I should have known!! They sure are taking a long time to finalise the deal. I just hope they can get in done by the end of this year so that they can carry on with the construction....

[Mith252]

Just wondering. It has been a long time since anyone has any updates about this project. Anyone have any ideas? It piqued my interest due to the redevelopment plan for the Jurong East area shown recently.

[Mith252]

Darn, found this article about the development from 21 December 2010. It is going to take some time.

The Business Times
Published 21 December 2010

TTI left in the lurch as Boustead pulls out
by Ven Sreenivasa

Debt-laden TTI’s survival could be at stake without $150m for Big Box project

(SINGAPORE) In a move which could be the straw that finally breaks TT International’s back, mainboard-listed Boustead Singapore has pulled out of its plans to pump in some $150 million to revive the former’s Big Box mega retail-cum-warehouse project in Jurong East. The move could leave TTI, which is weighed down with massive debt and under a Scheme of Arrangement, with no lifeline for survival as a going concern. Boustead, which has been negotiating with TTI to partner it in this eight-storey 125,000 sq m gross floor area warehouse-cum-retail complex next to Jurong East MRT Station, said the risks were untenable given the restrictions placed under the Warehouse Retail Scheme (WRS).

“After extensive negotiations and due diligence process, we realised that given the restrictive terms of the WRS and the requirements of the creditors, we could not mitigate the risks,” said FF Wong, Boustead’s CEO and executive chairman. “As such, we have decided not to proceed with this project.” One key requirement of the WRS scheme is that TTI would be the main and only official lessee of the Big Box. This means that despite coughing up some $150 million, Boustead would have little say – at least on paper – on the scale of its involvement in the finished project or how it could use the building. Boustead, already an infrastructure, energy and engineering player, was looking to invest in the Big Box because it saw it as an avenue for stable and steady recurrent income.

Its pullout leaves TTI – which has already pumped in $95 million into the project – in a major fix. Led by the husband-and-wife team of executive chairman Sng Sze Hiang and executive director Julia Tong, TTI built up an impressive portfolio as a global trader of mainly electronic products. In particular, it had built up its Akira brand into a household name. In 2008, prior to the financial meltdown, the company posted $5.6 million profit on revenue of $876 million. Its NTA was $185 million. By October 2008, the financial crisis hit and client payment defaults left the company teetering with huge debts, inventory writedowns and impairment losses. Banks started pulling back credit facilities, including some $83 million which was cancelled or frozen in 2009.

By end-2009, the company was facing some $600 million in claims, including syndicated loans from a slew of banks. It also defaulted on its $250 million multi-currency mediumterm note (MTN) programme. Financial adviser nTan Corporate Advisory and legal firm WongPartnership, who were
appointed to assess the damage, proposed a scheme of arrangement to manage the debts and impose a moratorium on any immediate
action against TTI. Meanwhile, Mr Sng and Ms Tong sought court protection against personal bankruptcy. The company sought court protection, resulting in a final Scheme of Arrangement with OCBC Bank, main Big Box contractor Ho Lee and DBS Bank appointed as the monitoring committee (MC) to oversee the scheme as the company tried to negotiate its way back into business with clients and principals. But the biggest hope for a recovery was the resumption of the Big Box project.

Allocated to TTI by the Economic Development Board under its fourth WRS (after three others in Tampines, where Ikea, Giant and Courts
own similar projects), it would have been a marquee project for TTI. But after sinking some $95 million into the Big Box, work stopped after the foundation stage as the funds ran out. TTI has about three months to salvage the situation and find a new “white knight” failing which the fortune of this once-thriving company could crash against the rocks.

[SonofaDude]

Originally Posted by Mith252

Darn, found this article about the development from 21 December 2010. It is going to take some time.

according to the article, TTI has three months to find another White Knight. Wonder what happens after that ...

[Mith252]

I know. Possibly, URA may confiscate the lands back from them and a new bidding process happens, again. I hope it happens.

[mrtfreak]

I passed by JE the other day, but I can't remember for the love of me what was in the construction site. If I do pass by again, I'll let you know.

[Mith252]

If remember correctly, just the foundations and some grass. That shows how long they have abandon the place.

[mrtfreak]

I'd passed by so often its usually background to me. I thought there was something new there like maybe clearing, but I could be mistaken.

[Mith252]

I think what you saw was the starting of the construction of the Jurong General Hospital and the new commercial building next to Jurong East MRT.

[mrtfreak]

No, it was definitely Big Box. I remember seeing a container inside the construction area with the rusting rebar stubs in the hole they've dug. Jurong General will be between Big Box and IMM. Big Box is like across the road from Synergy.