News:Asia

Auditor cast doubt on Marco Polo Marine to continue as a going concern

The auditor of distressed Marco Polo Marine has cast “significant doubt” on the ability of the company to continue as a going concern in view of its net liabilities and losses.

In an auditor report issued by Singapore-listed Marco Polo Marine, Mazars LLP wrote an “emphasis of matter” stating the offshore services firm’s challenging future as it reported net current liabilities of SGD25.98m ($17.94m) and loss before tax of SGD16.94m as at 30 September 2016.

Mazars said these numbers indicate the “existence of material uncertainty which may cast significant doubt on the ability of the group to continue as a going concern.”

The auditor report added that the ability of the group to continue as a going concern is dependent on the successful negotiation and completion of the restructuring of its bank loans or the generation of sufficient cash flows.

“If the group is unable to continue in operational existence for the foreseeable future, the group may be unable to discharge their liabilities in the normal course of business and adjustments may have to be made to reflect the situation that assets may need to be realised other than in the normal course of business (…),” the report mentioned.

On the back of dwindling cashflow, Marco Polo Marine has sought and gotten majority approval from noteholders of SGD50m 5.75% fixed rate notes issued under a SGD300m multicurrency term notes program in extending the maturity of the notes by three years from 18 October 2016.

Posted 28 December 2016

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Lee Hong Liang

Lee Hong Liang
Asia Correspondent, Seatrade Maritime

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