oBike Singapore’s $10 M Cash Vanish Into Hong Kong—Liquidators Expose the Puzzle
The tangled web of oBike’s finances in Singapore just got a little clearer, thanks to FTI‑Consulting’s audacious sleuthing. The ex‑bike‑sharing firm, which shut its Singapore doors in June after a brief 18‑month run, had apparently moved a staggering $10 million of money collected from users straight to its Hong Kong arm—without a trace back to its Singapore account.
Who’s on the Hook?
- oBike Hong Kong – now the focus of a stern demand letter.
- Founder Shi Yi – possibly next on the email cart.
- 30+ creditors gathered at Shaw Tower, from stranded bicycle renters to plaguing vendors.
The Meeting Where the Storm Hit
During a two‑hour pow‑wow on Wednesday, the majority voted to appoint Joshua James Taylor and Yit Chee Wah as the liquidators. Mr Taylor, the senior managing director at FTI‑Consulting, spilled the beans: “What we found… the deposit money dipped into the Singapore account and then jumped across the sea to Hong Kong.”
According to him, the Hong Kong side had “lent” Singapore money that was later “netted off,” rendering it as if nothing was owed—a classic preference move in insolvency terms.
What’s the Bottom Line?
- oBike Singapore raised $11.7 million in total—deposits and usage fees.
- After the money vanished westward, $1.7 million remained to pay back customers and cover expenses.
- So far, $350 000 of claims have been filed by users, and companies have stacked up a whopping $739 000 of debt ear‑to‑ear.
Logistics Companies: “None of Us Are Waiting for a Miracle!”
Mr Ong, a logistics owner, shook his head. “It’s a standard procedure, but I’m not optimistic unless the government steps in. Otherwise, oBike will just flop as a failed business.” He also admitted the firm stopped paying in April 2018, with the owed sum hovering in the “five‑figure range.” Two other logistics firms mentioned they were each owed six‑figure sums, but kept their names hush‑hush.
FTI‑Consulting’s Next Play
They’ll investigate whether any financial breaches took place—and if needed, ask the courts to claw back the financial housekeeping that went awry.
Historical Context
- oBike’s first Singapore launch: January 2017.
- Financial year ending Dec 31, 2017: losses hit a cold $4.25 million.
So what does it all mean? If a company does a “pre‑payment” and then shifts that cash straight to another country, it may be seen as an unfair preference. Liquidators for such cases have to track down the misplaced funds and, if necessary, bring the money back to where it belongs—ensuring creditors get what they’re owed.
