Another bank has demanded repayment from troubled contract manufacturer Jurong Technologies Industrial Corp.
The company is facing judicial management after at least six other banks issued demands for over $200 million in the space of one month. The company has disclosed unsecured borrowings of $282.3 million due in one year or less as at Sept 30, 2008.
The latest demand for repayment was from Cooperatieve Centrale Raiffeisen-Boerenleenbank, or Rabobank International, for the two sums of US$14.7 million and US$7.7 million from the company and a key subsidiary. This is due to certain trade financing facilities granted by the Singapore branch of the bank.
Other banks clamouring for repayment include Belgian outfit KBC, ABN Amro Bank, Sumitomo Mitsui Banking Corporation, United Overseas Bank, OCBC Bank and DBS Bank.
Jurong Tech’s stock has been suspended since the Chinese New Year weekend and is likely to remain so if the company goes into judicial management, according to SGX listing rules.
The company recently issued a profit warning, saying that it was likely to book a material loss for the year ended Dec 31, 2008. It made a $29 million net profit for its last full financial year in 2007, but has been weighed down since Motorola, a key customer, started cutting back orders.
The financial crisis in the last quarter of 2008 compounded company’s woes as it found itself unable to refinance or repay its increasingly hefty debt.
1 comment:
Jurong Tech faces another bank demand
By CHEW XIANG
10 February 2009
Another bank has demanded repayment from troubled contract manufacturer Jurong Technologies Industrial Corp.
The company is facing judicial management after at least six other banks issued demands for over $200 million in the space of one month. The company has disclosed unsecured borrowings of $282.3 million due in one year or less as at Sept 30, 2008.
The latest demand for repayment was from Cooperatieve Centrale Raiffeisen-Boerenleenbank, or Rabobank International, for the two sums of US$14.7 million and US$7.7 million from the company and a key subsidiary. This is due to certain trade financing facilities granted by the Singapore branch of the bank.
Other banks clamouring for repayment include Belgian outfit KBC, ABN Amro Bank, Sumitomo Mitsui Banking Corporation, United Overseas Bank, OCBC Bank and DBS Bank.
Jurong Tech’s stock has been suspended since the Chinese New Year weekend and is likely to remain so if the company goes into judicial management, according to SGX listing rules.
The company recently issued a profit warning, saying that it was likely to book a material loss for the year ended Dec 31, 2008. It made a $29 million net profit for its last full financial year in 2007, but has been weighed down since Motorola, a key customer, started cutting back orders.
The financial crisis in the last quarter of 2008 compounded company’s woes as it found itself unable to refinance or repay its increasingly hefty debt.
Post a Comment