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SunMoon exec chairman defends company's financial performance
The 2013 debt restructuring of fruit distributor and food ingredients maker SunMoon has cleaned up the company's balance sheet and saved it S$2 million a year in interest, said executive chairman Gary Loh.
Mr Loh was making the comments in a clarification announcement on Monday evening to an Aug 25 Straits Times report, which he said "appears to skew the financial performance of the group".
Six SunMoon shareholders are currently seeking to oust Mr Loh as executive chairman at an extraordinary general meeting on Oct 5.
Mr Loh led a rescue of the company in 2013 through his private equity firm First Alverstone Capital.
On Monday evening, Mr Loh said: "The board notes that without the fresh funds injection to complete the debt restructuring, the company would likely have remained technically insolvent, if not already insolvent, with interest expense continuing to accrue at approximately S$1.95 million per year, payable to the lenders."
"The Ebitda (earnings before interest, taxes, depreciation and amortisation) of the group was already positive since FY 2009 based on the operational changes made in 2007 and 2008, though the interest expense due to the lenders from FY 2009 through to the completion of the debt restructuring affected the net profit of the group during that period."
SunMoon reported a profit of S$66,000 for its second quarter ended June 30, 2015, compared to a S$465,000 loss the same period a year ago. Revenue rose 20 per cent to S$10.5 million.
The company was once known as FHTK Holdings. SunMoon closed at 4 Singapore cents, up 0.2 cent or 5.3 per cent, before the clarification.