Alpha DX (SGX:VVL), currently under judicial management, has provided an update regarding its scheme of arrangement with creditors, according to a Friday filing on the Singapore Exchange.
Following the court's sanction of the scheme on Aug. 7, the company was required to make a cash distribution to creditors by Sept. 19.
This distribution is intended to be funded through a conditional loan agreement with lenders Bryan Lim Soon Fang and Cheung Po Kuen, Michael.
However, the company has not yet received the necessary funding from the lenders, putting it in a position where it cannot fulfill the cash distribution obligation.
Under the terms of the scheme, non-payment of the distribution could lead to termination unless rectified within 30 business days or waived by a special resolution at a creditors' meeting.
The company is actively engaging with the lenders to secure the required funds and will provide further updates as developments occur.
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