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Stocks to watch: China Environment, FSL Trust, Ezra Holdings
THESE stocks had developments or news that may influence trading on Monday:
China Environment said on Monday that it has engaged a legal firm in the People's Republic of China (PRC) to handle various civil cases. These include a civil suit by Longyan Dongxiao Construction Engineering announced on Dec 6, 2016, against the company's wholly-owned subsidiary Fujian Dongyuan Environmental Protection (FDEP) for a construction contract dispute.
The mainboard-listed industrial waste gas treatment solutions provider added that it will file a report in the PRC with the authorities there on former executive chairman Huang Min's alleged fraud against the company.
It will also "pursue legal action against customers whose outstanding trade receivables owing to FDEP are genuine".
First Ship Lease (FSL) Trust said on Monday that it expects to report a "significant net loss" for FY2016, which is mainly attributable to impairment provisions on vessels and a loss on the disposal of two vessels.
The trust, which owns ships and provides leasing services on a long-term bareboat charter basis, added that despite the accounting loss, it will continued to generate positive cash flow and income available for distribution for the year ended Dec 31, 2016.
On Monday, FSL Trust also announced that Alan Hatton has ceased to be a director and the chief executive officer (CEO) with effect from Feb 2, 2017. Roger Woods, the deputy CEO, has been promoted as the acting CEO with effect from the same date.
Ezra Holdings is said by players to have miscalculated the timing or financial exposure of entry into the top end of the subsea business, according to a report by The Business Times on Monday.
The market is apparently split over whether the listed offshore and marine group can manage to garner the required financial backing to pull through the crisis emerging from a potential US$170 million writedown tied to its subsea joint venture.