Abterra says it is solvent, after controlling shareholder put under liquidation

SINGAPORE - Natural resource firm Abterra reassured investors on Sunday (Dec 11) that it is solvent and able to meet its financial obligations.

The statement from chief executive Lau Yu, published on the Singapore Exchange website, came after Abterra announced last Wednesday (Dec 7) that controlling shareholder, General Nice Resources (Hong Kong) had been put under liquidation by the High Court of Hong Kong.

GNR has a 34.96 per cent stake in Abterra.

Abterra said on Sunday its board of directors has reviews the company's cash flow and balance sheet to determine its financial status.

The board concluded that Abterra is not relying on GNR financing, will be receiving proceeds from the sale of office units at Suntec Tower 1 in due course and that these proceeds will be sufficient to settle all Abterra's payables and sustain the company for at least another six months.

Taking these into consideration, Abterra said "the board is of the opinion that the company is solvent and able to meet its financial obligations and that the company is able to operate as a going concern".

Abterra added it is working to "defer certain payments to professionals until the receipt of the proceeds of the disposal of the office units, and will continue its business as usual".

The company is still working to establish a sustainable trade business in commodities such as coking coal, coke and iron ore, it added.