Suppliers Take Legal Action against Triyards

Problems keep on emerging for the financially-troubled shipbuilder Triyards Holdings Limited as suppliers take their claims over unpaid bills to court.

According to the latest update from the Singapore-based company, some of its subsidiaries have received various claims from suppliers and are currently involved in on-going litigation.

In addition, one of the subsidiaries of the company has also received a statutory demand from two of its suppliers in respect of outstanding payments. The subsidiary is said to be in discussions with the relevant suppliers with the aim of reaching a settlement.

Claims stemming from the said litigation cases could reach up to USD 2.9 million, Triyards said.

Furthermore, the cash-strapped shipbuilder has received demand letters from two of its lenders, for an aggregate overdue amount of approximately USD 9.1 million.

“The group is currently in discussions with all its lenders with the aim of securing the necessary support for a period of 180 days to allow the group put up a viable restructuring plan,” Triyards commented.

The legal action from suppliers and lender demands come on the back of Triyards’ efforts on setting up a restructuring plan so as to keep its business operations.

Triyards has been in talks with various parties to recapitalize its balance sheet and improve the liquidity of the group, which may include fundraising via new loans and issue of new securities.

The shipbuilder is discussing financial arrangements with lenders aimed at increasing existing project funding, however, there has been no definitive agreement reached yet.

As informed in September, the shipyard was reassessing its ability to continue or to complete current projects with the existing financial resources available as it is experiencing liquidity shortage.

In addition, the group has experienced delays in delivery and collections from its clients for certain completed projects due to the fact that shipowners are severely affected by the downturn in the oil & gas industry, putting further pressure on the company’s ability to meet its loan repayments.