Ezion Holdings Suspended Trading on Singapore Exchange
Ezion Holdings had just released its second quarter financial statement for the six months ended 30th June 2017 (“Financial Statements”) which reflected a difficult first half of 2017 experienced by the Group. Section 10 of the Financial Statements explains the outlook for the next 12 months and sets out the severe threats and opportunities the Group will be facing.
The company further added that they felt confident that with the Group’s efforts and focus as explained in paragraph 3 of section 10 of the Financial Statements, Ezion will become the industry leader in Self Propelled Service Rigs when the market eventually recovers. The management team will also be reorganized to provide better oversight in this current environment. However, the present difficulties faced by the Group have presented many challenges to the cashflows of the Group that will threaten the fundamental viability of the Group’s business if these challenges persist.
The company is in talk with the creditors with regards to financing options and further said that while the initial responses from the principal lenders appeared positive, the details will need to be finalised and that the outcome of the above discussions will very much determine if Ezion will survive the current crisis and emerge stronger than before. It is therefore dependent upon the Creditors goodwill if Ezion would suffer the current downturn and if it won’t.