Shane Kimpton, chief executive officer of AusGroup. The company' s application for judicial management comes after restructuring plans, talk of potential sales, and several resignations. PHOTO: AUSGROUP

AUSGROUP : 5GJ 0% has applied to the Singapore High Court to be placed under judicial management, the mainboard-listed integrated service solutions provider said in an announcement on Wednesday (Nov 23).

 

Tan Wei Cheong, Matthew Stuart Becker and Lim Loo Khoon of Deloitte & Touche have been proposed as joint and several interim judicial managers and judicial managers of the company, it added.

 

On Nov 17, AusGroup updated that it was formulating and progressing with a restructuring plan for the financial obligations of the company with Deloitte. It also said that it continued to be in discussions with several parties for the potential sale of certain assets and businesses.

 

&ldquo While some of these confidential discussions are at an advanced stage with indicative draft terms, there is no assurance that the potential transactions will materialise,&rdquo it added.

 

The judicial management applications follow AusGroup&rsquo s trading halt called on Nov 7 and trading suspension called on Nov 10. In addition to the potential sale, AusGroup said that discussions with its management to assess the company&rsquo s financial position led to the trading suspension recommendation.

 

AusGroup in the last month announced the resignation of Christian Johnstone as chief financial officer, effective Feb 6, 2023 and the resignation of Shane Kimpton as managing director, though Kimpton remains chief executive officer.

 

AusGroup shares last traded at S$0.009 on Nov 4, the lowest since the company went public in 2005.

 

MAINBOARD-LISTED AusGroup : 5GJ 0% is in discussions with several parties for the potential sale of certain assets and businesses. It has also suspended the trading of its shares following a halt called on Nov 7.

 

Although these talks are at an advanced stage with indicative draft terms, the integrated service solutions provider said there is no assurance that any sale will materialise, it said in a bourse filing on Thursday (Nov 10).

 

As the group&rsquo s board is also in talks with management over the company&rsquo s financial position, it has recommended that AusGroup&rsquo s shares be suspended from trading. 

 

&ldquo As the board and management are still in the midst of ascertaining the situation, a trading suspension would also provide market certainty and avoid market confusion,&rdquo the group said.

 

AusGroup shares last traded at S$0.009 on Nov 4, its lowest since AusGroup went public in 2005. 

 

On Tuesday, the group announced the resignation of Christian Johnstone as chief financial officer, effective Feb 6, 2023. Johnstone, who has held the role since 2016, is leaving to pursue other career opportunities, AusGroup said in a bourse filing.

 

The group has seen some changes surrounding its C-suite management in the past week. On Tuesday, it announced the resignation of Christian Johnstone as chief financial officer, effective Feb 6, 2023. Johnstone, who has held the role since 2016, is leaving to pursue other career opportunities.

 

The move comes days after AusGroup said Shane Kimpton will step down as managing director of the company, but remains as chief executive to focus on operational matters and issues pertaining to the company and at the group-level.