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EMAS Offshore's auditor cites disclaimer of opinion over 'material uncertainties'
OFFSHORE services provider EMAS Offshore on Friday said its auditors have issued a disclaimer of opinion, citing "material uncertainties" that may cast significant doubt about the group's ability to continue as a going concern.
The auditor, Ernst & Young, noted that the group has reported a loss of US$535 million with a net current liabilities position of US$679 million as at Aug 31, 2016.
"In addition, the cash flows of the group have been extremely challenging and the group has not been paying its principal and interests to financial institutions as well as bareboat charter payments to its lessors. The group has also received various letters of demand from vendors, financial institutions and lessors," the auditor said.
"These conditions indicate the existence of material uncertainties that may cast significant doubt about the group's and the company's ability to continue as a going concern."