Bromat Holdings, formerly known as No Signboard Holdings, has received a letter of demand from a renovation contractor to pay an outstanding bill by May 26.

 

On May 20, Sandbox Studio sent Bromat a legal letter asking for $253,582.18, the outstanding sum for work done at Bromat' s Shang Society restaurant at Erkskine Road.

 

According to Bromat in its May 23 SGX announcement, this sum has been accounted for in its financial results for the six months ended March 31.

 

If the sum is not paid up on time, Sandbox, besides taking legal action, will also claim interest and legal costs incurred, says Bromat.

 

" The company is in the process of negotiation with Sandbox and will make further announcements to update shareholders in the event the payment is made or on any material developments, as and when necessary," says Bromat.

The group&rsquo s board says that the proceeding against Gazelle will not have any material impact on its business

 

BROMAT Holdings : 9I7 0% said on Aug 2 (Friday) that a creditor of its controlling shareholder, Gazelle Ventures, has commenced a winding-up proceeding against the shareholder amid a legal dispute.

 

The food and beverage (F& B) player, formerly called No Signboard, issued S$4.5 million worth of convertible redeemable preference shares to Gazelle on Mar 28. The instrument is convertible into 145 million shares in Bromat.

 

There are no provisions for the early repayment or termination of the convertible redeemable preference shares by either party, and the repayment can be made through the conversion at Bromat&rsquo s option.

 

In a regulatory filing, Bromat&rsquo s board said that, barring unforeseeable circumstances, the proceeding against Gazelle will not have any material impact on the group and its business, and that it can continue operating as normal.

 

The company had been embroiled in legal proceedings before the former controlling shareholder called it quits and the &ldquo No Signboard&rdquo trademarks were sold under a settlement agreement.