Asiatravel.com Holdings seeks 2-month extension to announce Q2 results due to cashflow issues, lack of finance staff

ASIATRAVEL.COM Holdings announced late on Friday that it has made an application to the Singapore Exchange for a two-month extension to announce the group's second quarter financial statement from the current deadline of Aug 14.

Among its reasons for an extension is "minor cash flow issues" as a result of, among others, a breach of obligations by ZhongHong Holdings which had entered into a convertible note agreement with the company for a principal amount of S$10 million but has only, to date, paid S$2.65 million. The company said that it is in contravention of the agreement.

Due to the company's minor cash flow issues, there have been multiple resignations and the company's remaining resources are focused on its restructured operations.

The company said that aside from its chief financial officer Ang Yen Leng, it lacks qualified accounts and finance staff.

Additionally, as a result of the company's ongoing legal proceedings, it is currently dealing with an influx of booking cancellations and credit disputes.

"Owing to the unwarranted negative publicity, it has been hard for the company to hire new accounts and finance staff. Nonetheless, the company is currently looking to rehire its past accounts and finance staff on a part-time basis," said Asiatravel.com Holdings.

The company said that it will update shareholders when there are material developments relating to the matter.