The following article
has been adapted from Straits Times Interactive (Friday, 9th
January 2004 edition).
THE idea was strength in unity. But in the end, it may have been a
case of too many cooks spoiling the broth. Private bus operator
Trans-United Corp, once thought to be a force in the transport
industry, is in financial straits.
The company, an amalgamation of 12 smallish private bus operators
that is barely four years old, is now under the judicial management
of Ferrier Hodgson, an accountancy firm specialising in
insolvencies and restructuring.
Judicial managers are appointed, usually by the High Court, to take
charge of a company which cannot pay its debts.
Ferrier Hodgson took out space in The Straits Times yesterday to
seek 'expressions of interest' from any party who might be keen to
take over 'all or part' of the bus company. These should be lodged
by 4pm next Monday.
When contacted, the accounting firm's partner Tim Reid said: 'We're
not looking for investors, but someone to acquire the business, in
whole or in part.
'My priority now, with Chinese New Year being so close, is to
settle this so that the wages of the workers can be paid.'
The bus company has about 300 staff and 265 mainly large buses -
its 'principal assets'.
He said his office had received 'a large number of inquiries from
several parties'.
Asked about the size of the company's debt, Mr Reid said: 'It's
inappropriate for us to disclose that.'
According to available Registry of Companies and Businesses data,
the operator incurred a net loss of more than $500,000 in
2000.
As recently as a couple of years ago, the company had grand plans
of listing and going regional.
Its chairman, Mr Harry Lim, said in a 2001 interview that the
operator's expected annual turnover was $26 million and that it
aimed to increase its fleet to 1,000 buses in five years, from 300
then.
So what happened?
No one at the company was available for comment yesterday. Mr Lim
said via voice-SMS that he was busy in 'an important meeting with
staff and am not ready to make any comment'.
Sources, however, said changing transport conditions here, as well
as shareholder discord, may have been responsible for the sudden
slide in business.
'It's a tragic story,' one said.
Shortly after the company's formation, the field heated up with
taxi operator Comfort Group - now part of ComfortDelGro Corp -
muscling into the private bus segment, aggressively vying for
school-children and workers.
Retired industry veteran Ng Ser Miang, who started bus operator
Tibs in 1980 after bringing seven smaller bus companies together,
said: 'It's regrettable the efforts to bring 12 companies together
didn't work.
'This goes to show public transport is not an easy business. The
cost is high, but the margins aren't. You need to be very efficient
and productive.'
He eventually bought out his other shareholders.
'It was a matter of making people see that if you come together,
some will have to give up autonomy... It was an amicable
parting.'
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Cheers and warm regards