Singapore Post closes 2 US businesses

Thanks to not getting buyers for the operations, Singapore Post’s two US operations TradeGlobal and Jagged Peak have filed for voluntary Chapter 11 bankruptcy protection.

Singapore Posts’s two US operations had been on sale for some six months and were marketed to potential buyers around the world. The two offers the Singapore postal operator received were in its option ‘commercially unfeasible’.

As a result, TradeGlobal and Jagged Peak have filed for bankruptcy protection in the District of Nevada US Bankruptcy Court. All or substantially all of their assets are set to be sold.

“SingPost will no longer include the US subsidiaries in its consolidated financial reports. For the quarter ended 30 June 2019, the unaudited consolidated loss arising from the US subsidiaries was approximately $6.9 million,” SingPost said.

SingPost is expected to incur professional and administrative fees during the process for the Chapter 11 proceedings, however these are not expected to be material.

“SingPost will monitor the financial impact on SingPost arising from the Chapter 11 proceedings, or any sale of assets under the supervision of the bankruptcy court, and will make further announcements as appropriate,” the company said.

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