DBS, OCBC and others owed $306m by car-sharing firm Shariot and related businesses

A group of 18 related companies, including Autobahn Rent A Car and car-sharing service Shariot, have applied to the High Court for a six-month moratorium to halt creditor actions, including the repossession of assets, while they work out a proposed scheme of arrangement.

- Lee Nian Tjoe Senior Transport Correspondent

According to documents filed on Nov 28, the companies collectively owe $305.9 million to various financial institutions, businesses and government agencies.

Among the list of creditors are major banks: DBS Bank is owed $94.8 million, UOB $13.4 million, and OCBC Bank $8.6 million.

A scheme of arrangement is a court-supervised process that enables financially distressed companies to negotiate with creditors to restructure their debts and continue operating.

This comes after nine of the 18 related companies requested on Nov 25 that creditors temporarily refrain from initiating recovery action for debt amounting to $180 million. This was to allow time for the companies to look for restructuring options. The bulk of the debts was incurred by car leasing firm Autobahn Rent A Car.

The court application said that creditors have intensified their pressure to recover debts since the Nov 25 letter.

The application also mentioned that the group of companies were interconnected functionally and financially, adding that the various companies were formed or acquired over time as the business developed.