Singapore offshore vessel operator Miclyn Express Offshore (MEO) has raised going concern issues in its latest annual report.
MEO posted a total comprehensive loss of $98.4m for the year, having recognised an impairment loss of $56.6m on its fleet after conducting a review.
In terms of debt, MEO has bank loans totalling $321.9m and a $150m senior secured guaranteed bond, with principal on the bond due in November 2018. In order to address its debt obligations, as well as its other general obligations and working capital needs, MEO has appointed financial and legal advisors to assist the company with a debt restructuring.
MEO says that its ability to service the debt is now dependant on the outcome the debt restructuring and while management believes a positive outcome is likely, a failure to restructure would “cast significant doubt on the group’s ability to continue as a going concern.”
Two weeks ago, MEO announced it is working with the Securities Investors Association (Singapore) to engage holders of its bonds in order to commence restructuring discussions.
