In a statement to the Singapore Exchange Marco Polo said that while the oil price had stabilized the offshore marine sector remained in a sustained depression.
“Most of the group’s vessels are not chartered out, with a good number of the customers of the group not paying on time or at all, leading to an accumulation of substantial aged accounts receivables which, in turn, affected the group’s working capital,” the company said.
Marco Polo said that while its bonds had been successfully restructured and attempt at loan restructuring had proved to be a protracted exercise. The company has been unable to secured a hoped for formal standstill agreement with its lenders, additional bank facilities or financial aid from SPRING Singapore.
“To ensure its business sustainability under the current distressed market conditions for the foreseeable future, the group intends to undertake a refinancing and debt restructuring exercise of all its current secured and unsecured debts to strengthen its cash flow and working capital position,” Marco Polo said.
The company said it was in discussions to payments owed on banks loans, invoices and outstanding contracts.
It also convening an informal meeting of its bondholders and does not expect to make an interest payment due on 18 April with the monies redeployed as working capital.
Marco Polo expects to make a loss in the second quarter of FY17 ended 31 March 2017.
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