oBike liquidators ‘working actively’ with investor to kick-start refund process

oBike liquidators ‘working actively’ with investor to kick-start refund process

oBike’s liquidators said on Wednesday (Jan 23) that it is “working actively” with the bike-sharing company’s new investor to finalise an agreement that will see creditors retrieve their money. Vanessa Lim reports.  

SINGAPORE: oBike’s liquidators said on Wednesday (Jan 23) that it is “working actively” with the bike-sharing company’s new investor to finalise an agreement that will see creditors retrieve their money.

Speaking at a meeting with creditors on Wednesday afternoon, senior managing director for liquidators FTI Consulting, Mr Joshua Taylor, explained that his team has met with oBike’s new investor thrice to provide the necessary information and has even provided a draft agreement.

Once the agreement is signed, Mr Taylor said the two parties will kick-start a process that could see creditors retrieve their money within two months.

These creditors include users who previously paid a S$49 deposit to use oBike services, as well as former vendors for the bike-sharing company.

Mr Taylor did not identify the investor, but TODAY reported last week that he is Costa Rican national Oscar Moises Chaves.

TODAY also reported that Mr Chaves has a 66.9 per cent stake in oBike’s global business, excluding the Singapore entity being liquidated.

READ: oBike stops operations in Singapore, cites difficulties meeting new LTA regulations

While Mr Chaves is determined to fulfil the firm's obligations to its creditors, repayment in Singapore - where oBike is in liquidation - has hit an "impasse", according to the report.

Mr Chaves also reportedly said that he was waiting for FTI Consulting to provide a full breakdown of the amounts owed to parties in Singapore.

oBike creditors meeting
Mr Joshua Taylor addressing around 20 oBike creditors at the meeting on Wednesday (Jan 23). (Photo: Amir Yusof)  

One of the creditors, Mr Gabriel Teo, who represented logistics company The Lorry, asked at the meeting about the progress of talks with the investor.

Mr Taylor replied: “It doesn’t automatically happen. We have provided information, we have provided a draft agreement to finalise this negotiation that we are talking about in terms of deposit holders. Once it’s signed, we will be able to notify via the media that an agreement has been signed, and then step up the process in terms of how people might collect their funds.”

"NO SIGNIFICANT DELAYS ON OUR PART"

Mr Taylor also confirmed that the liquidators met the investor last October, last November and last week to supply any information that was requested.

“I don’t think there’s been any significant delays on our part. There may have been some delays between meetings (but) whatever has been requested will be provided,” he added. 

At the meeting, Mr Taylor confirmed that as of noon on Wednesday, FTI Consulting has received S$760,000 worth of claims from creditors in Singapore. 

But he noted that based on oBike's books and records, the company had more than 220,000 deposit holders in Singapore with claims amounting to around S$8.9 million. 

Mr Taylor added that the liquidators have recovered around S$540,000 by selling the company's bicycles and recouping funds held by third-party service providers. 

Source: CNA/am(hs)

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