SunMoon’s parent company declares bankruptcy
International fresh produce specialist SunMoon Food Company has announced that its parent company has been placed under voluntary bankruptcy reorganisation in China in a statement submitted to the Singapore Exchange on 12th October. Shanghai Yiguo E-Commerce, the holding company of Yiguo General Food, holds a 59.9% stake in Singapore-based SunMoon. On 30th July 2020, three Yiguo entities were placed under voluntary bankruptcy reorganisation under Chinese law on 30th July: Shanghai Yiguo E-Commerce, Shanghai Winchain Supply Chain Management and Shanghai Exfresh Logistic.
The announcement said: “In view of the bankruptcy re-organisation relating to the Yiguo-related entities (in particular, the three YG entities), the board takes the view that there will be a material impact on the group’s ability to continue operating as a going concern.”
The company’s shares on the Singapore Exchange dropped 22% on 12th October before trading was halted. In response to the developments, SunMoon said its board has been and would continue to explore various options to address the issue including seeking to raise funds from investors. An executive committee has been set up to take over the day-to-day management and operations of the company.