Breaking: Bromat Holdings Issues Statutory Demand Over S\$1 Million Unpaid Disposal—Bankruptcy Action Looms
Key Points for Investors
- Bromat Holdings Ltd. has issued a statutory demand to the Purchaser of its subsidiary, Dining Haus Pte Ltd, seeking recovery of S\$1,000,000 in consideration, overdue interest, and legal fees.
- The Purchaser has 21 days from 30 October 2025 to settle, secure, or compound the total amounts due; otherwise, Bromat reserves the right to initiate bankruptcy proceedings.
- This development follows ongoing delays in the completion of the subsidiary disposal, which was first announced in April 2025 and subsequently updated through multiple Company announcements and a circular to shareholders.
- The Company cautions shareholders and potential investors to exercise care in trading Bromat shares and to seek professional advice if in doubt.
- This enforcement action could have direct implications on Bromat’s financial health and future strategy, potentially impacting share price.
Full Details of the Update
Bromat Holdings Ltd. (“the Company”), incorporated in Singapore, has taken decisive action in response to the prolonged delay by the Purchaser in completing the acquisition of its subsidiary, Dining Haus Pte Ltd. Despite prior announcements and a circular to shareholders during 2025, the Purchaser has failed to pay the agreed consideration of S\$1,000,000, along with accrued interest and the legal fees incurred in issuing the statutory demand.
On 30 October 2025, Bromat issued a formal statutory demand to the Purchaser. Under Singapore law, the Purchaser now has 21 days to pay, secure, or otherwise compound the total outstanding amount to Bromat’s satisfaction. Should the Purchaser fail to meet this deadline, Bromat reserves the right to file a bankruptcy petition against the Purchaser. This is a significant escalation, indicating the Company’s intent to pursue legal remedies and recover the amounts due.
The “Total Amounts Due” comprises:
- S\$1,000,000 original consideration for the disposal of Dining Haus Pte Ltd
- Overdue interest accrued on the unpaid consideration
- Legal fees incurred in preparing and issuing the statutory demand
This statutory demand and potential bankruptcy action represent a watershed moment in the disposal process, which has seen repeated delays and frustration for the Company. Bromat’s Board, led by Executive Director Tan Keng Tiong, has stated that further announcements will be made to keep shareholders updated as material developments occur.
Shareholder Impact and Price Sensitivity
This announcement is highly price sensitive and could impact Bromat Holdings’ share value. The recovery (or non-recovery) of S\$1,000,000 in cash and associated interest is a material financial event for Bromat Holdings. Should the Purchaser default and Bromat be forced into bankruptcy proceedings, it may result in further costs, delays, and uncertainty regarding the realization of value from the disposal.
Shareholders are explicitly warned by the Company to exercise caution in trading Bromat securities until further updates are released, and to consult their professional advisors as needed. The outcome of this statutory demand—and any subsequent bankruptcy action—could influence Bromat’s cash flow, strategic direction, and confidence in its management’s ability to execute major transactions.
Further Developments
Bromat Holdings will continue to update shareholders as the situation develops. The statutory demand is a legal step that could soon lead to more severe enforcement action, with direct implications for the Company’s financial position and market sentiment.
Contact and Regulatory Notes
This announcement has been reviewed by Bromat’s sponsor, SAC Capital Private Limited. The Singapore Exchange Securities Trading Limited has not examined or approved the content and assumes no responsibility for its accuracy. For further queries, shareholders may contact Ms. Tay Sim Yee at SAC Capital.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Shareholders and investors are encouraged to consult their stockbrokers, bank managers, solicitors, accountants, or other professional advisers before making any decisions regarding Bromat Holdings Ltd. securities. The writer and publisher assume no liability for any actions taken based on this information.
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