The judicial managers of Poh Lian Construction (PLC) are looking for buyers for the troubled construction firm and have received several expressions of interest.

Several potential investors have approached Tam Chee Chong and Andrew Grimmett  from Deloitte & Touche LLP with a view to purchasing PLC for its ratings.

PLC is rated an A1‐grade contractor for general building and A2‐grade for civil engineering works by the Building and Construction Authority (BCA).

PLC's parent firm, United Fiber System, said in an update yesterday: "The interim judicial managers considered a possible sale of PLC with its ratings without any liabilities, which shall be hived off  in a separate vehicle where a scheme of arrangement ... shall be undertaken in respect of those liabilities." No formal offer had been received.

PLC has five major building projects outstanding, comprising two Housing Board projects,two condominium developments and one to reconstruct St Anthony's Canossian Primary and Secondary Schools. For these remaining five projects, Mr Tam and Mr Grimmett have been negotiating to extinguish the performance bonds, reduce liquidated damages incurred from the projects' delayed completion, and for developers to release the retention sumsto PLC. Discussions are also under way with various parties interested in taking over the two HDB projects.

The developers of the Sophia, Goodwood and H20 projects have expressed interest in taking over some of PLC's foreign workers available to the new main contractors they will be engaging. To reduce PLC's labour costs, the judicial managers will work with the Ministry of Manpower to finalise the transfer of foreign workers (to the extent requested by the developers) or repatriation of such workers

Source: AmFraser