Australian firm G8 Education for breach of contract.
It has also successfully applied for a court order overturning a receivership appointment by G8, which the operator said was unlawful.
The move by G8 had put Cherie Hearts under threat of liquidation.
But while the operator appears to be out of the woods for now, its sale agreement with G8 is up in the air, with possible implications on future expansion plans by Cherie Hearts.
Lawyers for Cherie Hearts declined comment on the deal pending the outcome of the trial.
Last October, G8 agreed to buy over Cherie Hearts' Singapore operations for S$24.6 million, as part of a move by the Australian-listed firm to expand its childcare business into Singapore.
An affidavit submitted by Cherie Hearts detailed how, as part of the business acquisition contract, G8 would extend a S$12 million loan to Cherie Hearts and assume part of its outstanding debts.
The loan was to have been offset against the purchase price, and Cherie Hearts would receive some S$9 million once the sale was completed.
But on March 22, with a few weeks to go, receivers were called into the operator's Cecil Street headquarters, with G8 alleging a loan default of S$5.5 million.
This was disputed by Cherie Hearts, which said its loans had been effectively paid off as of March 1.
It later found out that G8 had also exercised its security over the alleged loan default, and, without its knowledge, assumed control of 12 of its subsidiary companies in Singapore.
Cherie Hearts has since assumed control of the 12 centres.
The case is now pending trial.
GEM Price at posting:
98.0¢ Sentiment: None Disclosure: Not Held
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