Shariot could be hived off into a JV with potential investors; group plans to begin repaying debts in January as its liabilities rise
[SINGAPORE] Autobahn Rent A Car and its related companies could receive a cash injection of up to S$100 million from external parties based in Australia and Malaysia. The group also said that it is solvent and aims to begin paying creditors in January.
In a supplemental affidavit dated Dec 23, Tan Boon Kee (also known as Roy Tan) – a director and major shareholder of many of the group’s companies – revealed that the group is in talks to hive off Shariot into a joint venture (JV) with City Centre Car Rentals and New Energy Valley.
City Centre Car Rentals is a car rental company based in Perth, Australia, and New Energy Valley is a commercial electric vehicle player headquartered in Selangor, Malaysia.
The proposed JV would receive a capital injection of around S$80 million. The amount could be increased to S$100 million, with the final sum dependent on due diligence processes.
According to the scheme manager’s plan, should negotiations with the potential investors succeed, the funds made available through that route would be used to pay the group’s creditors.
Tan identified Brendan Ho of ZND Group as a key possible investor. Ho is listed as the principal of City Centre Car Rentals. He is also the treasurer of the Australia Malaysia Business Chamber of Western Australia, according to that organisation’s website.
Ho established City Centre Car Rentals in 2014 and has since diversified into other sectors, including ticketing solutions, events, marketing and vending machines.
“I further understand that ZND Group considers Shariot to have strong growth potential, particularly in a space-constrained market such as Singapore, and has expressed an intention to expand and market the application into Malaysia in due course,” Tan said.
ZND Group’s interest is premised on the applicants being given an opportunity to pursue a restructuring, he added. He also noted that the group is in talks with other potential investors, whose identities cannot be disclosed yet.
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The Business Times was unable to confirm further details on ZND Group at the time of publication.
Autobahn and its related companies are pursuing a court moratorium while seeking a scheme of arrangement for their debt. The group owes over S$300 million to more than 40 creditors, including Singapore’s major banks DBS, OCBC and UOB; automotive financing companies; and car distributors.
Repayments in January
Tan’s supplementary affidavit gave additional details on the scheme of arrangement, such as the group’s solvency and the scheme manager’s plan.
It provided information on expected cash flow and also cited the group’s intention to begin repaying its creditors in January 2026. However, the document also showed that the group’s liabilities have increased since the news was first reported.
But the number of applicants covered in the affidavit has been reduced to eight, from a total of 18 companies previously.
The eight are: Autobahn Rent A Car, Hamilton Autohub, Hamilton Capital, Shinsei Rent A Car, AhTan Car Repairs, Hamilton Autobahn, 88 Auto and Thundercarz.
The other 10 companies will apply for moratoriums separately. These entities include Shariot, Hamster Car Rental and Bayfront Autohub.
The document stated that Autobahn Rent A Car, the company, was solvent. As at Jun 30, its total assets of S$197.7 million outweighed its total liabilities by around S$8.1 million.
Similarly, the Autobahn group reported that as at Jun 30, its total assets of around S$316.9 million outweighed its total liabilities of S$301.4 million.
The repayment plan said the main source of cash from operations would be derived from leasing vehicles, comprising 1,147 private-hire vehicles (PHVs) and 345 car-sharing vehicles.
Based on historical performance, nearly 90 per cent of the vehicles are secured with contracts amounting to a monthly revenue of S$2.6 million to S$2.8 million, the group said.
It added: “Further enhancement and stabilisation of revenue is expected through the re-contracting of PHVs with hirers, together with the provision of the necessary support and services to such hirers.”
Autobahn (the company) proposed beginning to repay a third of the scheduled monthly bank loan and hire-purchase instalments from January to March 2026. That would amount to about S$993,181 a month.
The company expects to generate a monthly net profit of S$2 million to S$3 million, of which around S$2.8 million will go towards servicing loans and hire-purchase obligations. The rest will be applied to the repayment of other outstanding loans, including to unsecured creditors.
The plan also listed the secured, preferred and unsecured creditors: there were 58 entities with total liabilities amounting to S$371.5 million. In contrast, at the group level (18 companies), debts stood at around S$300 million as at Nov 28.
A High Court hearing is set for Dec 26.
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