The Singapore-listed firm’s auditors, BDO LLP raised the issueon Friday, pointing out that liabilities heavily outweigh the totalvalue of its assets.
However in a statement the shipyard assured investors it hasthe backing of creditors to see it through the downturn.
“The Group has not encountered and currently does notencounter difficulties in continuing to utilise its existing banking facilities,”JES responded today.
“In addition, the Group has secured banking facilitiesamounting to CNY 135m from various financial institutions subsequent to thefinancial year end.”
JES says it is close to securing an Equity Line Facilityfrom another investor of up to approximately CNY 217m ($35m) and may also lookto tap other sources of funding within the debt and capital markets.
Around a month ago it raised SGD 7.2m from the sale of newordinary shares to a number of investors with the proceeds used for generalworking capital.
JES reported a net deficit of CNY 522.19m ($84.95m) for theyear to 2013, far deeper than the CNY 122.33m booked in 2012.
At the same time revenue plunged to CNY 542.89m from CNY2.54bn a year earlier.
However the company has had a better time of it of late securing a series of orders for up to nine bulkers.
