Ryobi Kiso enters joint venture agreement to tender for bored piling works

IN an update on its court-supervised reorganisation process, troubled ground engineering services firm Ryobi Kiso Holdings announced on Friday that its unit Ryobi Kiso (S) Pte Ltd has entered a joint venture agreement with Sunley E&C (Singapore) Pte Ltd to submit a tender for bored piling works for a proposed public residential development.

Ryobi Kiso said it views the joint venture, as well as previously announced new contracts and letters of intent, "as significant positive developments in the company's reorganisation efforts" and added that it will continue to take efforts to rebuild its pipeline of projects through the course of the moratorium.

It said it is currently not able to assess the financial impact of the joint venture on its consolidated net tangible assets per share or the earnings per share for the financial year ending June 30, 2019. Ryobi Kiso will release further updates if and when the project is awarded.

The company also gave an update on applications made to the court for variation of court orders and for leave to dispose of certain non-critical assets to facilitate the ongoing reorganisation process.

At the Oct 4 hearing, the orders made at the earlier Aug 27 hearing were varied to provide for certain payments to secured creditors for use of machinery during the moratorium and occupation of the premises. Orders were also made in respect of certain non-critical machinery to be disposed of or delivered to lenders with security over those machines.