SINGAPORE - Electric van leasing company EVCo has been put under insolvent liquidation, with debts of almost $50 million.
EVCo, also known as Strides DST, is 60 per cent owned by transport operator SMRT’s business arm Strides Holdings and 40 per cent by Dishangtie Green Technology (Hong Kong). The two-year-old firm was incorporated in March 2022 with a paid-up capital of $10 million.
The company was put under provisional liquidation not long after its former chief executive officer Fuji Foo and chief financial officer Janice Low were arrested in connection with a police investigation in late 2023.
A list of creditors obtained by The Straits Times showed that as at Feb 28, there were 28 creditors with $49.4 million due to them. It is not immediately clear if more creditors had come forward since Feb 28.
The list showed that the biggest amount is due to OCBC Bank, which is owed $47.6 million.
SMRT itself is owed $38,675, while various Strides-related units are owed a combined amount of around $590,000.
A meeting of creditors was held at 2pm on March 18.
Baker Tilly has been appointed liquidator. Mr Timothy Reid, a principal at Baker Tilly, said the company is in insolvent liquidation – meaning whatever remaining cash and assets will not be enough to repay all its debts.
Sources said assets include a fleet of China-made electric vans, which would have devalued substantially on the back of sliding certificate of entitlement prices. Electric vehicles left unused for a prolonged period are also likely to suffer from battery degradation.
Mr Reid added that all the creditors so far are unsecured creditors, which implies that there is no defined priority as to who gets repaid first.
While it is not common for banks to give unsecured loans, especially to start-ups, The Straits Times understands that some do so based on the standing of a parent company or majority shareholder; in this case, Temasek-owned SMRT.
As Strides DST is a private limited company, the liability of its shareholders is limited to the amount of capital they contributed.
When contacted, SMRT would only say that EVCo had gone into voluntary liquidation and an independent liquidator has been appointed.
Strides DST chairwoman Judy Lee was unreachable for comment.
Meanwhile, OCBC Bank would not comment, citing Singapore’s banking secrecy Act.
One creditor, who spoke on condition of anonymity, said: “I’m speechless. But I’ll say that this is down to poor management, poor execution and exploiting loopholes.”
In October 2022, the company announced its target to have a fleet of 2,000 electric vans for a vehicle-sharing programme, which allows SMEs different leasing packages, including a pay-per-use option.
Half a year after it was set up, EVCo said it would have 550 vans ready from January 2023.
In March 2023, the company registered 197 Chinese-made Shineray electric vans. EVCo is the only company to offer this brand of vehicle in Singapore. According to the Land Transport Authority, there were 218 Shineray vehicles registered in 2023.
