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Triyards flags potential threat to going concern
TRIYARDS Holdings on Wednesday afternoon asked for the trading halt on its shares to be converted to a trading suspension, following the group's announcement that it might have a going concern issue.
The firm, which provides engineering, fabrication and ship construction solutions for the global offshore and marine industry, said in its announcement that it has been unable to deliver certain vessels to clients within their contractual delivery dates. While none of these clients have cancelled their orders as a result, negotiations are underway between both sides to establish new delivery timelines.
This, coupled with delays experienced by Triyards in the delivery and collections arising from completed projects from clients affected by a downturn in the industry, has placed Triyards in a position where it is unable to meet certain loan repayments, it said.
"Currently, the group has received demand letters from two of its lenders, for an aggregate overdue loan instalments amounting to approximately US$0.8 million. The group is currently in negotiations with these lenders, the failure of which could potentially result in these lenders calling for the entire outstanding loan amounting to an aggregate sum of approximately US$6.9 million and potential cross default on other loans granted by other financial institutions to the group," it said.
In light of these developments, Triyards said it is not in a position to reasonably assess its financial position and could have a potential going concern issue until a viable restructuring plan is in place.
It added that it has engaged a financial adviser who is working with the group to come up with a proposed restructuring plan.