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EMS seeks extension for FY2017 results after court refrains from sanctioning scheme of arrangement
EMS Energy is seeking two more months to announce its results for the financial year of 2017 after the Singapore High Court held back from sanctioning its subsidiary's scheme of arrangement following a contest from its creditor.
EMS Energy has applied to the Singapore Exchange (SGX) for two more months until April 30 to announce its unaudited financial statements for FY2017. It has also asked for two more months' extension until June 30 to hold its annual general meeting for FY2017.
Separately, it has applied to the Accounting Corporate Regulatory Authority (Acra) for two more months until June 30 to hold its AGM and present its FY2017 statements at the AGM.
It said in an announcement after Thursday trading hours that a scheme creditor has 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 Pte Ltd, 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 SGX and Acra. Additionally, its external auditors, BDO LLP, will require more time to perform and complete the audit for the FY2017 financial results.
It added that a further court hearing date has been set on March 6. The existing moratorium on creditor claims against EES has been correspondingly extended to March 16 or other order of court.
EMS on Thursday also announced the appointment of Derick Lim Chien Joo, 47, as its chief financial officer.
Mr Lim was a group financial controller at Oakwell Distribution Pte Ltd (OSEC) from July 2013 till August 2017. He was previously group financial controller at Oakwell Engineering Ltd from September 2001 till July 2015.
Mr Lim served as a director at OSEC from March 30, 2011 to Dec 14, 2014. Following his cessation as OSEC director, the privately owned company faced a winding-up application filed by Oceanfront Trading Ltd.