Ezion says it can continue as a going concern

U.S. one-dollar currency notes; taken September 2018.U.S. one dollar bills.

Ezion Holdings said on Thursday that it believed it could continue as a going concern after its independent auditor, KPMG, included a statement of material uncertainty over its going concern status.

KPMG’s report, which was included in an SGX filing from Ezion on Thursday, pointed to the group’s net loss of US$344.34 million for 2018, as well as its net liability position of US$254.75 million as of end-December.

“These conditions indicate the existence of a material uncertainty which may cast significant doubt on the group’s and the company’s ability to continue as a going concern,” the filing to the exchange said.

But the auditor said the statements were still prepared on a going-concern basis, on the assumption that Ezion still has the support of its lenders, that the group can generate adequate cash flows and repay debts as they fall due within the next year, and on the successful completion of its debt restructuring.

The restructuring aims to capitalize up to US$916 million of debt into shares, the auditor noted.

“If for any reason the above assumptions do not materialize, which may result in the group and the company not being able to continue as a going concern, it could have an impact on the classification of assets and liabilities, and the ability to realize assets at their recognized values and to extinguish liabilities in the normal course of business at the amounts stated in the financial statements,” KPMG said.

 

 

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