Embattled Marco Polo Marine seeks suspension

Singapore-listed shipping services company Marco Polo Marinerequested a trading suspension last night as it faces an uphill battle to address its financial woes.

In recent weeks, the company has been working on a debt refinancing and restructuring plan.

In its most recent announcement to the Singapore Exchange on April 23, Marco Polo had said it did not believe a trading suspension was necessary then.

However, since then it has faced some difficulties getting its refinancing plans off the ground.

"Unfortunately, the company experienced resistance from some lenders to the preliminary proposal," the company said last night.

"Further, based on the feedback received so far from some of the lenders, and though the company is not of the present view that a failure of the proposed refinancing and debt restructuring is imminent, the company is not confident at this juncture that it would be able to eventually bridge the gap between the expectations of the lenders and the conditions set by the strategic investors as part of the proposed refinancing and debt restructuring."

The company said that given these developments, it believed a suspension in the trading of its shares was now necessary.

"The group has also seen, in recent days, an increasing number of reservation of rights letters and demand letters, including a statutory demand, from creditors.

"The company is in discussion with its advisers to determine the best course of action and the various options available to the group in relation to such letters."

The company said it was looking at all options, including searching for new potential strategic investors to supply additional funds.

In the meantime, the suspension would ensure no investors were trading in the company's shares without sufficient information to make an informed decision.

A version of this article appeared in the print edition of The Straits Times on May 02, 2017, with the headline 'Embattled Marco Polo Marine seeks suspension'. Print Edition | Subscribe