Triyards suspends trading in its shares in order to restructureYard News // September 7, 2017
The Board of Directors of Triyards Holdings Limited has confirmed that the group is currently experiencing difficulties in gaining access to new sources of liquidity. Its problems doing so have worsened since the release of its most recent results.
This has led the group to reassess its ability to continue or to complete existing projects with its existing financial resources.
The group is currently engaging all relevant stakeholders with an aim to ensure that the group will be able to deliver its existing projects to its customers.
In a statement, Triyards said that, although certain of its shipbuilding contracts are within the respective cancellation periods, because the group was unable to deliver the vessels by their delivery dates - including the grace period granted in the shipbuilding contracts - none of its clients has served notices of cancellation.
The group is currently negotiating with the clients to establish new delivery timelines that are mutually acceptable.
Concurrently, the group has been in active and continuous engagement with lenders regarding the possibility of increasing the funding for the projects.
Coupled with the above, Triyards has experienced delays in delivery and collections from its clients for completed projects due to the fact that they are severely affected by downturn in the offshore oil and gas industry.
The delay of collections and limited liquidity resources has put the group in a position where it is unable to meet certain loan repayments. Currently, the group has received demand letters from two of its lenders, for an aggregate overdue loan instalments amounting to approximately US$0.8 million.
Triyards said it is negotiating with these lenders, but failure to reach an agreement could ootentially result in the lenders calling for the entire outstanding loan amounting to an aggregate sum of approximately US$6.9 million and potential cross default on other loans granted by other financial institutions to the group.
As a result, Triyards has engaged a financial advisor who is currently working with it to develop a restructuring plan to submit to its various stakeholders.
"In light of the foregoing," said Triyards, "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. Therefore, the company will be converting the trading halt of the company’s shares to a trading suspension."