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EMS Energy granted two-month extension for FY2017 results and AGM
EMS Energy has been granted a two-month extension till April 30 for the release of its FY2017 financial statements and two months' extension till June 30 to hold its annual general meeting for FY2017.
This request for an extension came after the Singapore High Court held back from sanctioning its subsidiary's scheme of arrangement following a contest from its creditor.
A scheme creditor had indicated its wish to contest the scheme of arrangement filed by its subsidiary, EMS Energy Solutions Pte Ltd (EES).
The court hearing and delivery of judgement for the scheme were subsequently adjourned. On Feb 27, the High Court requested for more disclosure on the inter-company position between EES and a related company, Koastal Industries, and that the creditors should have a chance to reconsider their votes in light of the clarified position.
EMS pointed out that in the event that the EES scheme is not approved, it would need to consolidate the financial statements of this subsidiary on a liquidation basis.
The parent group cited this and high turnover in its finance team as the basis for the two-month extensions sought from the Singapore Exchange and the Accounting and Corporate Regulatory Authority (Acra). It also said that its external auditors, BDO LLP, will require more time to perform and complete the audit for the FY2017 financial results.
In addition, the company had experienced high staff turnover in the group's finance team in FY2017. The disruption of the staff movement had an impact on the accuracy of the financial data entry which has caused delay of its unaudited financial results for FY2017, said the group.