Hoe Leong says 'able to pay US$920,000' owed to Otto Marine, will fight winding up petition

SINGAPORE - Defendng itself against a winding up petition, Hoe Leong Corporation on Friday (Aug 19) said that it has sufficient financial resources to pay a sum of US$920,000 owed to Otto Marine and that the company can continue as a going concern.

This opinion was arrived at after its board of directors reviewed the company's forecasts of financial performance for the financial year ended Dec 31, 2016, and considered the continuing support of its bankers as well as the financial support of its majority shareholder, Hoe Leong Co (Pte) Ltd, it said in a filing to the Singapore Exchange around noon on Friday.

Hoe Leong also said it will file a defence against a petition on Thursday by Otto Marine to the Singapore High Court to wind up Hoe Leong for not repaying the US$920,000 outstanding on debts totalling US$1.5 million.

The hearing on the winding up application has been fixed for Sept 13.

Both companies are listed on Singapore's mainboard. Hoe Leong makes and distributes heavy equipment spare parts. It also sells offshore support vessels.

Last Friday, Hoe Leong reported a loss of S$4.1 million for the second quarter to June 30, compared with a S$1.7 million profit for the same period a year earlier.

The global slump in the oil aand gas industry has bled downstream into the offshore services sector, leading to a flrry of legal disputes over payments and orders.

Otto Marine started three arbitration proceedings this month alone and last month, its Batam-based shipyard subsidiary, PT Batamec, caused the arrest of the vessel Ratina Blessing, registered under RS Marine Investments, for outstanding ship-repair claims.