SINGAPORE (EDGEPROP) - Co-working and lifestyle operator The Working Capitol (TWC) announced on Nov 11, that the Scheme of Arrangement it has embarked on, has gained “a healthy and strong show of support” from its creditors, members and tenants, based on voting ballots cast.
(Read more: The Working Capitol files for restructuring to protect business as it negotiates with landlords)
The outcome of the votes indicates that the restructuring exercise may continue through the courts, and it gives TWC “a fresh start”, despite the challenges faced during the Covid-19 pandemic, says the firm.
The Scheme of Arrangement process had begun following a breakdown in discussion with two of its landlords, AIA Singapore and Crocodile International in June 2021. Having received a positive ruling from the court to secure a moratorium and with the help of external and internal restructuring, legal and finance experts, TWC had swiftly moved through the Scheme of Arrangement process to safeguard and protect its many stakeholders and community of members.
TWC is on track to complete the restructuring, according to the firm, pending no further hurdles from their landlords. With the court’s approval, the company is expected to close out the process by the end of year if not this month.
Gattie: We are optimistic that with our restructuring efforts, we will be able to produce an outcome that will serve the interests of all our valuable stakeholders (Photo: Samuel Isaac Chua/EdgeProp Singapore)
“While we ideally would have had open discussions with our landlords to avoid a restructuring altogether, this exercise has given us the chance to strengthen our business and see our community and neighbourhood resilience in full display,” comments Ben Gattie, founder and CEO of The Working Capitol. “It has afforded us a sharpened focus on maintaining our path towards sustainable profitability.”
This period has also allowed the company to “reassess and improve our business model”, adds Gattie. “We are optimistic that with our restructuring efforts, we will be able to produce an outcome that will serve the interests of all our valuable stakeholders.”
According to Gattie, there’s “tremendous traction and potential” in its co-working space as more businesses are looking towards flexible work solutions. TWC’s hybrid, human-scale, neighbourhood and shophouse-focused flexible workspace environment “has proven to be especially resilient and relevant in a post-pandemic world”, he notes. “TWC’s growth deeper into the neighbourhood despite the challenges of a restructure and a global pandemic are a testament to that.”