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Auditor flags going concern issues for Atlantic NavigationAuditor flags going concern issues for Atlantic Navigation

Atlantic Navigation Holdings (Singapore) Limited may be facing a going concern issue in view of the company’s loss-making position and its ability to restructure its debts, according to auditor Ernst & Young.

Lee Hong Liang, Asia Correspondent

April 17, 2017

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The auditor pointed out that Singapore-listed Atlantic Navigation incurred a loss of $11.42m for 2016 and the group’s current liabilities exceeded its current assets by $39.71m.

“These factors indicate the existence of a material uncertainty which may cast significant doubt about the group’s ability to continue as a going concern,” Ernst & Young stated in a report.

“The group’s ability to continue as a going concern is dependent on its ability to secure funding to support its working capital requirements as well as committed capital expenditure in the near term and obtain support from various parties to restructure its loans and borrowings so as to enable it to meet its financial obligations,” the auditor said.

Atlantic Navigation, a marine logistics services provider, took an impairment loss of $2.27m for its 19 vessels which had a carrying value of $102.47m as at 31 December 2016. Its fleet comprises a variety of AHT, AHTS, multipurpose support vessels, liftboats and accommodation barges.

The auditor further highlighted the Atlantic Navigation’s trade receivables of $9.54m as at 31 December 2016 “were significant to the group as they represent 69% of the total current assets as at 31 December 2016.”

“The credit worthiness of customers may be impacted by certain micro and macroeconomic conditions, resulting in overdue trade receivables,” Ernst & Young stated.

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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