Singapore Post’s troubled U.S. e-commerce businesses, Jagged Peak, TradeGlobal and TradeGlobal North America, have filed for a Chapter 11 bankruptcy, the postal and logistics company said in a filing to SGX Thursday.
Chapter 11 generally involves reorganization of a company’s debts and assets, including a plan to keep the business running and negotiating to pay creditors; the company’s creditors won’t be allowed to pursue debts or claims from prior to the filing.
“Under the supervision of the bankruptcy court, the U.S. subsidiaries intend to pursue the sale of all or substantially all of their assets,” Singapore Post said.
The filing followed Singapore Post’s attempts to sell the business. The company said it had appointed a top-tier investment bank as a financial adviser and had reached out to potential buyers globally.
That resulted in 105 parties showing interest and signing non-disclosure agreements, leading to eight expressions of interest and two non-binding offers, SingPost said.
“These offers were on terms and conditions that were commercially unfeasible to SingPost. Therefore, the sale process has now closed with no acceptable offers,” the filing said.
SingPost said the U.S. subsidiaries won’t be included in its consolidated financial reports any longer; for the quarter ended 30 June, the subsidiaries had posted an unaudited consolidated loss of around S$6.9 million.