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China Environment may have to raise cash if customers cannot pay on time
China Environment may have to raise additional capital if its customers fail to pay up on time amid current conditions, the supplier of industrial gas cleaning equipment said on Monday.
The credit environment for China Environment's customers is currently tight, and work progression is slow, the company said after the market closed.
"Collection of the group's trade receivables from its customers may be slow or not on time as and when they fall due, and the group may require to seek fresh funds either from existing shareholders, new private placements, or other debt financing methods such as issue of preference shares, notes or bonds," the company said.
The announcement came a week after the company said a wholly owned subsidiary in China faced loan repayment demands from a branch of Citic Bank. China Environment said on Monday that working capital after a proposed S$3.2 million share placement will be sufficient to meet present requirements.
China Environment shares closed at 9.5 Singapore cents on Monday, unchanged from the previous session.