Electric van leasing firm EVCo declared insolvent with debts of close to $50m

[Zxcvb]

SINGAPORE - Electric van leasing company EVCo has been put under insolvent liquidation, with debts of almost $50 million.

EVCo, also known as Strides DST, is 60 per cent owned by transport operator SMRT’s business arm Strides Holdings and 40 per cent by Dishangtie Green Technology (Hong Kong). The two-year-old firm was incorporated in March 2022 with a paid-up capital of $10 million.

The company was put under provisional liquidation not long after its former chief executive officer Fuji Foo and chief financial officer Janice Low were arrested in connection with a police investigation in late 2023.

A list of creditors obtained by The Straits Times showed that as at Feb 28, there were 28 creditors with $49.4 million due to them. It is not immediately clear if more creditors had come forward since Feb 28.

The list showed that the biggest amount is due to OCBC Bank, which is owed $47.6 million.

SMRT itself is owed $38,675, while various Strides-related units are owed a combined amount of around $590,000.

Baker Tilly has been appointed liquidator. Mr Timothy Reid, a principal at Baker Tilly, said the company is in insolvent liquidation – meaning whatever remaining cash and assets will not be enough to repay all its debts.

Sources said assets include a fleet of China-made electric vans, which would have devalued substantially on the back of sliding certificate of entitlement prices. Electric vehicles left unused for a prolonged period are also likely to suffer from battery degradation.

Mr Reid added that all the creditors so far are unsecured creditors, which implies that there is no defined priority as to who gets repaid first.

While it is not common for banks to give unsecured loans, especially to start-ups, The Straits Times understands that some do so based on the standing of a parent company or majority shareholder; in this case, Temasek-owned SMRT.

As Strides-DST is a private limited company, the liability of its shareholders is limited to the amount of capital they contributed.

When contacted, SMRT would only say that EVCo had gone into voluntary liquidation and an independent liquidator has been appointed.

Strides-DST chairwoman Judy Lee was unreachable for comment.

Meanwhile, OCBC Bank would not comment, citing Singapore’s banking secrecy Act.

One creditor, who spoke on condition of anonymity, said: “I’m speechless. But I’ll say that this is down to poor management, poor execution and exploiting loopholes.”

In October 2022, the company announced its target to have a fleet of 2,000 electric vans for a vehicle-sharing programme, which allows SMEs different leasing packages, including a pay-per-use option.

Half a year after it was set up, EVCo said it would have 550 vans ready from January 2023.

In March 2023, the company registered 197 Chinese-made Shineray electric vans. EVCo is the only company to offer this brand of vehicle in Singapore. According to the Land Transport Authority, there were 218 Shineray vehicles registered in 2023.

https://www.straitstimes.com/singapore/transport/electric-van-leasing-firm-evco-declared-insolvent-with-debts-of-close-to-50m

[PSP415]

On 3/19/2024 at 5:47 PM, Zxcvb said:

SINGAPORE - Electric van leasing company EVCo has been put under insolvent liquidation, with debts of almost $50 million.

EVCo, also known as Strides DST, is 60 per cent owned by transport operator SMRT’s business arm Strides Holdings and 40 per cent by Dishangtie Green Technology (Hong Kong). The two-year-old firm was incorporated in March 2022 with a paid-up capital of $10 million.

The company was put under provisional liquidation not long after its former chief executive officer Fuji Foo and chief financial officer Janice Low were arrested in connection with a police investigation in late 2023.

A list of creditors obtained by The Straits Times showed that as at Feb 28, there were 28 creditors with $49.4 million due to them. It is not immediately clear if more creditors had come forward since Feb 28.

The list showed that the biggest amount is due to OCBC Bank, which is owed $47.6 million.

SMRT itself is owed $38,675, while various Strides-related units are owed a combined amount of around $590,000.

Baker Tilly has been appointed liquidator. Mr Timothy Reid, a principal at Baker Tilly, said the company is in insolvent liquidation – meaning whatever remaining cash and assets will not be enough to repay all its debts.

Sources said assets include a fleet of China-made electric vans, which would have devalued substantially on the back of sliding certificate of entitlement prices. Electric vehicles left unused for a prolonged period are also likely to suffer from battery degradation.

Mr Reid added that all the creditors so far are unsecured creditors, which implies that there is no defined priority as to who gets repaid first.

While it is not common for banks to give unsecured loans, especially to start-ups, The Straits Times understands that some do so based on the standing of a parent company or majority shareholder; in this case, Temasek-owned SMRT.

As Strides-DST is a private limited company, the liability of its shareholders is limited to the amount of capital they contributed.

When contacted, SMRT would only say that EVCo had gone into voluntary liquidation and an independent liquidator has been appointed.

Strides-DST chairwoman Judy Lee was unreachable for comment.

Meanwhile, OCBC Bank would not comment, citing Singapore’s banking secrecy Act.

One creditor, who spoke on condition of anonymity, said: “I’m speechless. But I’ll say that this is down to poor management, poor execution and exploiting loopholes.”

In October 2022, the company announced its target to have a fleet of 2,000 electric vans for a vehicle-sharing programme, which allows SMEs different leasing packages, including a pay-per-use option.

Half a year after it was set up, EVCo said it would have 550 vans ready from January 2023.

In March 2023, the company registered 197 Chinese-made Shineray electric vans. EVCo is the only company to offer this brand of vehicle in Singapore. According to the Land Transport Authority, there were 218 Shineray vehicles registered in 2023.

https://www.straitstimes.com/singapore/transport/electric-van-leasing-firm-evco-declared-insolvent-with-debts-of-close-to-50m

Sibei jialat.

Early early both CEO and CFO were arrested. Like playing masak masak. Game over liao? 

 

[ER-3682]

Temasek's Staff Sleeping.?

[Volvobrick]

Lelong for the EVs ie Electric Vans soon! 

 

[Soya]

EV van spend more time charging than delivering goods how to make $$?....

 

[inlinesix]

On 3/19/2024 at 8:43 PM, Soya said:

EV van spend more time charging than delivering goods how to make $$?....

 

That’s what my Company Driver did.

It is a driver problem 

[jcmm]

2 yrs, losing 50 mils + working capital.... good well planned.  

Edited March 19 by jcmm

[jcmm]

On 3/19/2024 at 7:30 PM, ER-3682 said:

Temasek's Staff Sleeping.?

As usual... many cases.  

[Zxcvb]

Even business to government-linked contracts can become insolvent and owe debts??

[Watwheels]

Owed almost 50mirrion to local banks siah. Nobody raised the red flag wan meh?

No whistle blower too. Those doing the accounts surely can tell so much money is owed.

Whoa, like that also can?

Edited March 20 by Watwheels

[Mrmilktooth]

So that’s how they can afford GCB , lol… 

[Ody_2004]

On 3/20/2024 at 8:16 AM, Watwheels said:

Owed almost 50mirrion to local banks siah. Nobody raised the red flag wan meh?

No whistle blower too. Those doing the accounts surely can tell so much money is owed.

Whoa, like that also can?

Now I understand why my professor told us to loan as much as one can 🤣

[Vratenza]

On 3/19/2024 at 5:47 PM, Zxcvb said:

 

Sources said assets include a fleet of China-made electric vans, which would have devalued substantially on the back of sliding certificate of entitlement prices. Electric vehicles left unused for a prolonged period are also likely to suffer from battery degradation.

 

https://www.straitstimes.com/singapore/transport/electric-van-leasing-firm-evco-declared-insolvent-with-debts-of-close-to-50m

Now we know why COEs cannot come down when leasing companies are having their field day bidding up the COEs to sustain their fleet value.😑

[Beehive3783]

On 3/19/2024 at 6:30 PM, PSP415 said:

Sibei jialat.

Early early both CEO and CFO were arrested. Like playing masak masak. Game over liao? 

 

Most likely the usual story la, paying themselves obscene salaries, inflating numbers to get loans, etc etc  

Now the musical chair game is over, see who is left standing  

[Beehive3783]

I'm waiting for PHV leasing firms to end up like this fella  

[Beehive3783]

On 3/19/2024 at 7:30 PM, ER-3682 said:

Temasek's Staff Sleeping.?

They ain't using their own money, I don't think they will sacrifice their sleep time to do due diligence.  

OR

They were misled by fraudulent numbers cooked up by the CEO and CFO  

[ER-3682]

On 3/20/2024 at 9:35 AM, Beehive3783 said:

They ain't using their own money, I don't think they will sacrifice their sleep time to do due diligence.  

OR

They were misled by fraudulent numbers cooked up by the CEO and CFO  

Citizen's or Tax-Payer's Money.

[Vratenza]

On 3/20/2024 at 9:33 AM, Beehive3783 said:

Most likely the usual story la, paying themselves obscene salaries, inflating numbers to get loans, etc etc  

Now the musical chair game is over, see who is left standing  

When is peanuts coming out?