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SINGAPORE: Debt-stricken Autobahn Rent A Car\u00a0has suspended its vehicle rental business and dropped its High Court appeal against creditors’ action.\u00a0<\/p>\n
Its fleet of about 1,700 vehicles will be repossessed and returned to the respective creditors, said law firm Fervent Chambers, which represents Autobahn Rent A Car and its associated companies.<\/p>\n
Autobahn also runs car-sharing company Shariot, which paused its rental services on Dec 31, prompting private-hire drivers to seek help getting back on the roads.<\/p>\n
In a joint media statement on Wednesday (Jan 7), the National Trades Union Congress (NTUC), the Land Transport Authority (LTA) and three ride platform operators – ComfortDelGro, Grab and Strides Premier – said they are working to support affected drivers by making vehicles available to them.<\/p>\n
“We know this situation has created significant hardship for affected drivers, and we have engaged a number of them. Drivers depend on their vehicles to earn a living, and we take their livelihoods seriously,” said Assistant Secretary General of NTUC Yeo Wan Ling, who is also adviser to the National Private Hire Vehicles Association (NPHVA) and the National Taxi Association (NTA).<\/p>\n
“NPHVA and NTA will continue to work with LTA and platform operators to protect and support our drivers.”<\/p>\n
Autobahn owed more than S$300 million (US$234 million) as of Dec 23. Creditors include DBS, UOB, OCBC, Maybank and other finance companies.\u00a0<\/p>\n
Autobahn and a group of related companies had applied to the High Court for a six-month moratorium for protection against creditor actions.<\/p>\n
Following the withdrawal of the application, insurers have terminated car insurance policies, which are a legal requirement for any vehicle to be driven on public roads.<\/p>\n
“There remain operational difficulties without the protection of the court from enforcement of claims and repossession of the cars,” Fervent Chambers said.\u00a0<\/p>\n
In the joint statement, LTA said it has received information that the car insurance for some Autobahn cars has not been renewed or has been cancelled.<\/p>\n
“LTA has given them notice that as the owner, they must ensure proper insurance cover and if there is a lapse in insurance, Autobahn must ensure that the hirer is informed and that the vehicle is not used on the roads,” it added.<\/p>\n<\/div>\n