SINGAPORE — More than $198 million in claims have been submitted by creditors to the liquidator of beleaguered online marketplace Qoo10, but only $34,650 has been recovered, according to minutes of the latest creditors' meeting seen by The Straits Times.

Of the sum recovered, $20,000 was from Qoo10's 11 bank accounts with DBS Bank, $14,150 was from rental deposits that were held by landlords of employees, and $500 came from the disposal of office furniture and IT equipment.

According to information submitted by Qoo10 founder and chief executive Ku Young-bae to the liquidator, AAG Corporate Advisory, Qoo10's total assets are valued at $685.6 million.

But the bulk of that comes from Qoo10's three e-commerce platforms — Tmon, WeMakePrice and Interpark Commerce — all of which are now under corporate restructuring in the Seoul Bankruptcy Court after failing to make payments to the platforms' merchants since 2024.

According to the minutes of the Jan 17 meeting, Abuthahir Abdul Gafoor of AAG Corporate Advisory told creditors that $11.3 million in trade and other receivables included debt owed to Qoo10 by Tmon, WeMakePrice and Clues Network, an Indian company operating an e-commerce platform called ShopClues.

Another asset, Qoo10's shares in its former logistics arm Qxpress that had a face value of $12.1 million, had been transferred out, according to the minutes.

This came after three shareholders that had provided US$42 million (S$56 million) in loans to Qoo10 and were given the option to acquire its shares in Qxpress as collateral, exercised their conversion rights in July 2024 and acquired the shares from Qoo10.

Some $18.6 million in investments remain to be verified, according to the minutes.

Abuthahir added that the liquidator will be liaising with DBS to recover a fixed deposit of $380,000, as well as $715,000 held by payment gateway providers Worldpay and PayPal.

"The recovery of $685.6 million is highly doubtful because Tmon, WeMakePrice and Interpark are undergoing restructuring, or the investment has already been transferred out of Qoo10 or is unaccounted for," a source close to the matter told ST.

Qoo10's total liabilities far exceed the sums recovered so far.

According to the Jan 17 creditors' meeting minutes, the liquidator received 322 claims totalling $250,441 from three preferential creditors and $197.9 million in unsecured claims.

Preferential creditors refer to those that have a legal right to be paid before other creditors, and are given priority in the distribution of assets. 

The preferential claims consisted of $155,000 in unpaid goods and services tax, as well as claims filed by two former Qoo10 employees for notice pay and leave encashment.

The remaining 319 unsecured creditors' claims comprised trade and customer payables, and intercompany payables or loans owed by Qoo10 to its related companies.

Unsecured creditors are those who extend credit without requiring collateral, meaning they have no specific assets to claim if the borrower defaults. 

Abuthahir said the liquidator will decide on the validity of debt claims and if they should be paid at a later stage, "subject to availability of funds for any dividend distribution".

The liquidator was appointed in November 2024 to take over management of the insolvent company after Korea Culture Promotion (KCP), which operates culture portal sites and issues culture gift certificates in South Korea, sued Qoo10 for nearly 76 billion won (S$69 million) in unpaid debt.

Singapore's High Court approved the winding up of Qoo10 in November 2024 and allowed 21st Century Healthcare, which said it is owed $954,115, to replace KCP as the claimant.

A committee of inspection — a group that represents the interests of the creditors — was appointed on Jan 17, 2025, to supervise and assist the liquidator with the administration of Qoo10's affairs. This includes appointing lawyers, approving the liquidator's fees and starting legal proceedings for asset recovery.

Qoo10's liquidation follows mounting claims from its unpaid vendors, which triggered investigations by the authorities in both Singapore and South Korea.

Due to cash flow issues faced by Tmon and WeMakePrice, which accounted for a third of Qoo10's sales, Qoo10 could not collect receivables.

Negative media reports and speculation resulted in a further decline in sales and cancellation of orders, and some merchants discontinuing sales on the platform. This exacerbated cash flow issues and dampened its ability to fulfil requests for refunds and payments to merchants.

Following customers' complaints over delays in processing refunds and payments, the Monetary Authority of Singapore suspended Qoo10's payment services in September 2024, and the police here are investigating the company over payment delays to vendors. All employees' services were terminated by the end of October 2024 due to the company's lack of funds, the liquidator said.

According to the minutes, in response to a creditor's question on the expected schedule for the conclusion of the liquidation process and possibility of debt recoverability, Mr Abuthahir said that at this stage, there is no definitive timeline for the completion of the liquidation.

"The liquidation administration is currently in progress, with efforts on gathering relevant information and realising the company's assets," he said.

This article was first published in The Straits Times. Permission required for reproduction.