AusGroup to terminate services for Esso Thailand refinery
Wong Pei Ting
A SUBSIDIARY of AusGroup, which has been placed under judicial management, will terminate its agreement to provide an Esso Thailand refinery with scaffolding and insulation services.
In a bourse filing on Wednesday (Mar 15), the group’s joint judicial manager Tan Wei Cheong said the notice was sent out to end AusGroup Thailand’s services for Esso Sriracha Refinery, following a failed bid to attract investments or get the company restructured.
Based on AusGroup Thailand’s financial position, external funding is required for it to continue operating without disruptions.
But when the judicial managers approached potential investors who had previously expressed interest in AusGroup Thailand, the parties no longer showed interest to invest in or restructure the company, after carrying out their due diligence.
Tan also said the parent company is unable to provide the wholly-owned subsidiary the necessary financial support it required to maintain its service outline agreement with Esso Thailand, given its current status and financial position.
The decision to end the agreement was thus made to mitigate any exposure arising from its potential inability to continue fulfilling its obligations, Tan said.
The agreement will cease 45 days from Wednesday.
Trading of AusGroup’s shares continues to be suspended.
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