Marco Polo Marine issues clarification, saying its business fundamentals are sound

Marco Polo Marine's dry docks in Batam, Indonesia.
Marco Polo Marine's dry docks in Batam, Indonesia. PHOTO: MARCO POLO MARINE

SINGAPORE - Mainboard-listed Marco Polo Marine issued a clarification on Friday morning (Sept 23), stating that its statement the previous day on cautionary risk factors disclosed as part of a consent solicitation exercise (CSE) should not be construed as saying that the company is presently unable or has doubt on its ability to operate as a going concern.

"The company would like to assure that its business fundamentals are sound, notwithstanding the volatile economic climate and sectoral weakness," it said in a filing to the Singapore Exchange.

It said this view was supported by positive earnings before interest, taxes, depreciation and amortization (EBITDA) for the financial year ended Sept 30, 2015, and for the nine months ended June 30, 2016, of S$27.1 million and S$4.2 million respectively.

Marco Polo Marine said it was clarifying various media reports that it had expressed "substantial doubt on its ability to operate as a going concern".

The company said it wished to emphasize that the aforesaid statement was one of several cautionary risk factors that are typically made in the context of consent solicitation exercises and was made in view of the lack of visibility in the recovery of oil prices which, in turn, would affect the recovery of the offshore and shipping industries in the medium term.

Marco Polo Marine is seeking sought noteholders' approval to defer redeeming bonds worth S$50 million, that are due next month, by three years.