STB slaps Asiatravel.com with suspension notice

CATALIST-listed Asiatravel.com Holdings and its subsidiaries may have their travel agent licences suspended by the Singapore Tourism Board (STB), after the firm's auditor cast doubt on its ability to continue as a going concern last week.

The STB said on Friday that it had served Asiatravel.com and its subsidiaries AT Reservation Network, AT Express and SH Tours Pte Ltd a Notice of Intent to Suspend, in accordance with the Travel Agents Act (Chapter 334).

The Notice of Intent to Suspend was served on grounds of public interest, as the STB is cognisant that Asiatravel and its subsidiaries are unable to fulfil some of their outstanding obligations to their business partners and customers, the STB said in a statement.

Asiatravel and its entities have 14 days to submit reasons to the STB, to show cause against a suspension. During this period, Asiatravel and its entities will still be required to ensure that consumer bookings are not affected, and make good all existing obligations to their consumers and industry partners, STB said.

They are also required to inform all customers of the notice of intent to suspend with immediate effect.

Trading in shares of Asiatravel.com has been suspended since July 6, after its controlling shareholder missed a scheduled funding payment of S$7.35 million to the company at end-June.

The group incurred a net loss of S$34.6 million for the financial period ended Dec 31, 2017. As at that date, the group's and company's current liabilities exceeded their current assets by S$10.99 million and S$0.44 million respectively.

Independent auditor Ernst & Young has made a disclaimer of opinion on the the group's 2017 financial statements, flagging going concern issues.