Triyards, whose ultimate parent is bankrupt Ezra Holdings, said the group has received demand letters from two of its lenders asking to be paid overdue loan instalments amounting to approximately $800,000.
While Triyards is currently in negotiations with these lenders, the failure of which could result in these lenders calling for the entire outstanding loan amounting to a sum of approximately $6.9m and potential cross default on other loans granted by other financial institutions.
In July, Triyards announced that it made a $53.38m allowance for impairment charges for the nine months ended 31 May for its financial year 2017 due to reassessment of certain assets value and its exposure to Ezra.
After the announcement of the impairment charges, Triyards said it is now experiencing difficulties in gaining access to new sources of liquidity.
“This has led the group to reassess its ability to continue or to complete its existing projects with the existing financial resources available,” Triyards said.
“While certain shipbuilding contracts are within the respective cancellation periods as the group was unable to deliver the vessels within the respective contractual delivery dates including the grace period granted in the contracts, none of the group’s respective clients has served notices of cancellation,” the company stated.
“Coupled with the above, the group has experienced delays in delivery and collections from its clients for certain completed projects due to the fact that the client(s) are severely affected by downturn in the oil and gas industry,” it added.
Triyards said it has engaged a financial advisor who is currently working with the group to put up a restructuring plan to its various stakeholders.
“In light of the foregoing, the group is not in a position to assess reasonably its financial position and could have a potential going concern issue until a viable restructuring plan is in place,” it said.