Creditors fear illiquid equity in new honestbee entity

They say that as shareholders, they would be in worse situation if the new company fails; distressed startup delays last tranche of salary repayment to ex-staff

Sharanya Pillai

Published Mon, Feb 17, 2020 · 09:50 PM

honestbee

Singapore

BEING stuck with potentially illiquid stock was a key concern raised at honestbee's creditor townhall on Monday, which was attended by over 100 creditors, The Business Times has learnt from attendees.

The closed-door townhall was held at the startup's habitat concept supermarket at Boon Leat Terrace and helmed by chief executive Ong Lay Ann.

Separately, an honestbee spokesman confirmed to BT that honestbee has delayed the last tranche of salary repayment to ex-employees, which was due on Jan 30, while making most of its 150-odd workforce use up their annual leave during the suspension of its habitat supermarket.

"honestbee is conserving its working capital, however, we remain committed to me…