Trading in Ausgroup halted to review media report

Beleagured oil and gas engineering services provider AusGroup halted trading of its shares before markets opened on Friday (Sept 2)  to review a media report.
Beleagured oil and gas engineering services provider AusGroup halted trading of its shares before markets opened on Friday (Sept 2) to review a media report.PHOTO: ST FILE

SINGAPORE - Beleagured oil and gas engineering services provider AusGroup halted trading of its shares before markets opened on Friday (Sept 2) in response to a request by the Singapore Exchange (SGX) after publication on Friday of a report in the Business Times.

AusGroup said it will review the article to determine if any further disclosure is required.

The BT artcle said that at a meeting with management on Wednesday, Ausgroup noteholders said they want their bonds secured and are seeking a small early repayment to give their nod to roll over for another two years the S$110 million debt issue that falls due on Oct 20.

On Monday, Ausgroup reported that it is in breach of a financial covenant for that debt issue with its current liabilities exceeding its current assets by A$95.2 million as at June 30.

The company also posted a net loss of A$99.5 million (S$102.3 million) for the fourth quarter, sunk by hefty impairment charges.

AusGroup shares closed on Thursday at 3.9 Singapore cents.