SINGAPORE (THE BUSINESS TIMES) – Sen Yue Holdings sees itself as a going concern for the financial year ended September 2020 and has no intention of undergoing voluntary liquidation or ceasing trading in the foreseeable future.
The waste management group did a review of its cash flow forecasts and concluded that except for subsidiary SMC Industrial (SMCI), there will be sufficient cash flows and resources to allow the group to continue its operations and meet its obligations.
Earlier this month, Sen Yue reported that DBS, its bank creditor, had applied to the High Court for the group and SMCI to be placed under judicial management.
SMCI owes DBS around $5.9 million and has about US$9 million (S$12 million) outstanding, plus all accrued interest and legal costs on an indemnity basis. In January, it received a letter of demand from DBS, which had recalled banking facilities on the grounds of default. The lender had demanded that the sums be paid in three weeks, failing which SMCI would be liable to be compulsorily wound up.
At a High Court hearing on March 10, the court adjourned the hearing on the interim judicial management applications to a date no earlier than April 1.
Sen Yue reported in its results announcement late on Wednesday that post Sept 20, 2020, SMCI received letters of demand from five creditors amounting to $8.2 million and US$0.2 million in aggregate and from two banks amounting to $7.2 million and US$11.1 million.
Sen Yue reported a loss of $44.1 million for FY2020 compared with a net profit of $21,000 in the previous financial year. Revenue fell from $243 million to $175 million in the latest financial year amid a significant decrease in the commodities segment and lower sales to overseas customers.
Looking ahead, the group said it will focus on restructuring its commodities business segment and expansion of its e-waste business segment.
Sen Yue called for a trading halt at the end of April last year, and converted this to a trading suspension the following month.