Fri, Oct 11, 2019

Reshmi Khurana Quoted in The Straits Times on Honestbee’s Restructuring

Following the four-month reprieve granted to Singapore startup, Honestbee, to restructure its debt and business operations, the company has been working on several revamps. This includes modifying its retail outlet to remain competitive and regain confidence from investors and consumers. At the same time, discussions on arrangements with ex-employees regarding the settlement of unpaid salaries and creditors continue to take place.

One of the options was the debt-to-equity swap for which negotiations between parties are still underway. Reshmi Khurana, Managing Director and Head of Southeast Asia in the Business Intelligence and Investigations practice at Kroll, a division of Duff & Phelps, shared her insights on this option in an interview with The Straits Times. Factors affecting creditors’ decisions include long-term viability of the sector and the business in which Honestbee is currently in as well as the brand’s strength. 

"Creditors may reject a debt-to-equity swap if they believe that restructuring the debt, including the interest payment terms, may be sufficient to turn around the business," Reshmi said. "The creditors may also encourage Honestbee to consolidate its debt so that it is easier to bring in a new creditor or investor."

Subscribers of The Straits Times can read the full article here.