SINGAPORE - Chinese plastic bottle maker, Full Apex Holdings, responded on Wednesday (Dec 6) to queries from the Singapore Exchange (SGX) with regard to the liquidation of its wholly owned unit Jetzen Investment. This comes as Jetzen failed to settle the outstanding principal and accrued interest of a US$46 million loan.
In its response to the SGX, Full Apex said that the company and its wholly owned subsidiaries, Patum Manufacturing Limited and Full Apex International Limited are joint guarantors of Jetzen's debts.
Notwithstanding the loan, the firm and all of its subsidiaries have been carrying out its operations as per normal, and the board thinks that the impact of the loan is now minimal, Full Apex said.
The company is in the process of seeking legal advice, and negotiations with lenders for a potential debt restructuring of Jetzen are ongoing. "Management is also actively exploring with other financial institutions on the possibility of refinancing," Full Apex said.
It added that "sufficient information has been disclosed by the company to enable trading to continue on an informed basis" and that a trading suspension is not required at this stage.
Full Apex closed up three Singapore cents or 14.63 per cent at S$0.235 apiece on Tuesday.