JES had in August 2013 secured credit facility of up to $20m with an option for another $20m under a loan and maintenance agreement with Lyceum Partners. But the Chinese yard was alleged to have commited a default under the agreement by failing to make due payment of maintenance fee.
Singapore-listed JES, however, claimed that a master agreement for the facility had been terminated, denying the lender any entitlements to make claims under the agreement, including but not limited to the maintenance fee.
JES said it has not drawdown on the facility since October 2013 and that it did not need to rely on the facility for its working capital needs for the past eight months.
“The board further reassures the shareholders that the company is continuing to explore other source of fresh funding to support the group’s operations,” JES said, adding that it is working with trading companies to secure refund guarantees and working capital for purposes of performing new contracts.
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