ATLANTIC NAVIGATION HOLDINGS (SINGAPORE) LIMITED

(Company Registration No. 200411055E)

________

RESPONSES TO QUERIES RAISED BY THE SINGAPORE EXCHANGE REGULATION

The Board of Directors (the "Board") of Atlantic Navigation Holdings (Singapore) Limited (the "Company", and together with its subsidiaries, the "Group") refers to the Company's announcement dated 1 March 2022 (the "Announcement") on its unaudited condensed interim consolidated financial statements for the financial quarter and year ended 31 December 2021 ("FY2021") and wishes to provide its responses to the following queries raised by the Singapore Exchange Regulation Pte. Ltd. ("SGX RegCo") on 9 March 2022, as follows:

SGX RegCo's Queries

Company's Responses

1. The

Group

recorded

(i) Aging schedule of the Group's trade receivables are set out below:

US$11,171,000

in

trade

receivables as at 31 December

31 December 2021

2021,

accounting

for

US$'000

approximately

76.3%

of

the

Group's total current assets.

Trade receivables (Gross)1

10,801

Please disclose:

Unbilled receivables1

38

Retention receivable, all current/not due

1,223

(i)

The aging of the

12,062

Group's trade

Allowance for doubtful debts, aggregate

(891)

receivables;

Net receivables

11,171

Notes:

1 Aging of Trade Receivables (Gross) and Unbilled Receivables

Allowance

% of

Gross

for doubtful

Net

Aging past due

Net

debts

US$'000

US$'000

US$'000

%

Current/Not Due

6,898

-

6,898

69.3%

1 - 30 days

2,120

-

2,120

21.3%

31 - 60 days

434

-

434

4.4%

61 - 90 days

481

-

481

4.8%

91-150 days

223

(208)

15

0.2%

> 150 days

683

(683)

-

0.0%

Total

10,839

(891)

9,948

100%

Trade receivables are generally on 30 days and up to 60 days credit terms.

(ii)

Whether they are major

(ii) Approximately 88.5% of the total trade receivables are related to 5

major customers of the Group, out of which approximately 62.7% of

customer(s) and

these amounts were since paid to-date including those amounts in the

whether the Group

"Current/Not Due" as at 31 December 2021 which are due by now. With

1

SGX RegCo's Queries

Company's Responses

continues to transact

established and current relationships with the Group, the Group intends

with these customer(s);

to continue to transact with these customers.

(iii)

The Group's plan to

(iii) The Group's major customers are predominantly reputable companies

recover the trade

including National Oil Companies as well as international and mid-sized

receivables;

contractors with significant established presence in the Middle East

which the Group had worked with over a period of time. The Group

continues to work closely with these companies with relationships

evolving to involve close consultation, with the Group's vessels

earmarked as part of the customers' future planning. The Group does

not foresee any significant difficulties in collection as evident in the

subsequent collections as mentioned 2(i) and 2(ii) above.

(iv)

What were the actions

(iv)

See response to 1(iii) above.

taken to recover the

trade receivables;

(v)

How long are the debts

(v)

See response on in 1(i) above.

outstanding; and

(vi)

The Board's

(vi)

On the advice of the management, the Board expects the trade

assessment of the

receivables net of allowance for doubtful debts as at 31 December

recoverability of the

2021, to be recoverable.

remaining trade

receivables.

2. The Group recorded

The total loans excluding loans and advances from shareholders comprise of

US$52,682,000 of loans and

US$52,682,000 as current and US$1,248,000 in non-current portion, for total

borrowings as at 31 December

of US$53,930,000 as at 31 December 2021.

2021, accounting for

approximately 75.2% of the

Group's total current liabilities.

Please disclose the following:

(i)

Details of the loans and

For (i) and (ii), please see the Attachment for the details in summary as

borrowings, including

requested. Certain information have remained confidential such as the

the terms of loan,

identity of banks as well as the specific loans from which respective banks

interest on loans and

which have not been disclosed previously in view of the commercial

maturity dates;

sensitivities. Details of these loans including interest rates (without identity of

(ii)

A breakdown of the

the banks) are provided in Note 21 of the Financial Statements for the year

lenders and their

ended 31 December 2020 in the Annual Report 2020, with similar details to

identities (and its

be disclosed and updated in the Annual Report 2021.

ultimate beneficial

shareholders and

directors if this is not a

bank);

(iii)

When were the loans

(iii) Please see details in the Attachment on inception dates. The loans were

obtained and approved

approved by the Board.

by the Board, including

the Audit Committee;

and

(iv)

The use of proceeds

(iv) These loans were procured predominantly for the fulfilment of purchase

from the loan.

consideration for vessels acquired or payment to shipyards for new-built

vessels and other capital expenditure for vessel enhancement as required by

charterers and mobilisation.

2

SGX RegCo's Queries

Company's Responses

3. It is disclosed on page 12 of the

The Company refers the announcement made on 23 August 2021 that the

financial report that the Group

impairment loss of US$8,028,000 was recorded for 2Q FY2021. The

recorded US$8,028,000 of

responses continue to be applicable and largely reiterated hereon for ease

impairment loss on 3 three

of reference:

vessels.

Please disclose the following:

(i)

Details of the

(i)

For FY2021 financial results, vessel valuation across the entire fleet

independent

of vessels was conducted by Cleghorn, Wilton & Associates, Ltd. (the

professional valuers

"Valuer"), established in the UAE in 1979 and it has been the Group's

that conducted the

valuer since its inception.

valuation;

(ii)

The basis and date of

(ii)

The Group engages the Valuer on a semi-annual basis as previously

such a valuation; and

announced which provides valuations for a view of the market value,

having taken into consideration mainly the vessel's age, size, type

and characteristics, based on a sale between a willing buyer and a

willing seller and its own professional knowledge. Such valuation as

determined being the market value is deemed as the recoverable

amount, and the impairment is determined as the difference between

the recoverable amount and the book value as at 30 June 2021 and

31 December 2021 with no further impairment in second half of

FY2021.

(iii)

The Board's

(iii)

On the advice of the Management, the Board confirms that it is

confirmation as to

satisfied with the reasonableness of the methodologies used to

whether it is satisfied

determine the amount of impairment.

with the

reasonableness of the

methodologies used by

the valuers to

determine the amount

of impairment.

4. As at 31 December 2021, the

The Group is of the view that its ability to meet its debt repayments should be

Group's current liabilities stand

evaluated from an overall perspective.

at US$70,047,000 with a cash

and bank balances of

As disclosed on page 7 of the Announcement, as at 31 December 2021, while

US$520,000. We also note that

the Group has reported a net current liabilities (current assets less current

there are US$2,462,000 in bank

liabilities) position of US$55,406,000, its net assets (i.e. total assets less total

overdrafts.

liabilities) was US$69,002,000. In addition, the Group's external loans of

US$53.9 million were secured by mortgages of vessels with a carrying value

Please disclose the Board's

of US$133.4 million as at 31 December 2021. Further,

assessment of the following:

(i)

Whether the Group's

(a) The Group is in discussions to sell certain vessel(s) at a reasonable price

current assets are

within a reasonable time-frame;

adequate to meet the

(b)

The Group is engaging in ongoing discussions to obtain refinancing

Group's short-term

facilities backed by vessels with secured contracts; and

liabilities of

(c) The Group expects cash flows from operations in an improving offshore

US$70,047,000,

market condition in the Middle East.

including its bases of

assessment;

Subsequent to the year end of 2021, following progress updates from the

(ii)

How the Group intends

Group and further discussions, one of the principal banks (the "Relevant

to fulfil its significant

Bank") had consented to the Group's request to refinance or repay the

payment obligations in

outstanding secured loans from the sale proceeds by 30 June 2022.

the next 12 months.

Where the Group has

With the ongoing discussions either for substantive sale for loan repayment

worked out debt

or refinancing supported by significant charter party contracts including the

repayment plans to fulfil

firmed 730 operational days, i.e. 2 years, contract and potential sale pursuant

3

SGX RegCo's Queries

Company's Responses

its debt obligation,

to the call option granted for a liftboat, Delta-22, as announced on 4 March

please disclose if the

2022, the Group is of the view that it is broadly on track to fulfilling these

Group is on track to

obligations.

fulfilling these

obligations; and

Besides the Delta-22 contracts finalised as announced on 4 March 2022, the

(iii)

Please disclose the pro-

other liftboat, as disclosed on page 17 of the Announcement, is currently on

active actions which the

contract expected to expire by end April 2022. There are a few of ongoing

management plans to

proposals being discussed (including extensions with existing charterer) with

take to ensure that the

varying charter durations. These charter party agreements when finalised

Group's financial

would provide the financial support to and facilitate the discussions for the

position remains strong.

intended refinancing or sale.

The Group will provide updates to the market when there are material

developments.

In the current improving offshore market, the Group's utilisation rates achieved

were 84.0% in 4Q2021, 76.7% in 3Q2021, with FY2021 at 73.7%. The Group

is focused on and is monitoring closely the ongoing but abating COVID-19

pandemic as well as Russia/Ukraine conflict and Middle East geopolitical

tension and will be adopting appropriate measures such that its operations are

not materially disrupted to generate the expected cash flow from operations.

By Order of the Board

Wong Siew Cheong

Executive Director and Chief Executive Officer

11 March 2022

This announcement has been reviewed by the Company's sponsor, SAC Capital Private Limited (the "Sponsor"). It has not been examined or approved by the Singapore Exchange Securities Trading Limited (the "SGX-ST") and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Ms Lee Khai Yinn (Tel: (65) 6232 3210) at 1 Robinson Road, #21-00 AIA Tower, Singapore 048542.

4

Attachment - Query 2

Outstanding as at

Loan Duration

No

Item

31 December 2021

Maturity

Interest rates

from Inception

US$'000

1

UAE Bank, various loans including

12,985

7.5 years from

October 2025

Both these outstanding loans hedged

overdraft facility, in aggregate

April 2018

to fixed interest cost at 8.0% per

US$34,711,000 with loan duration

annum ("p.a.")

between 3.5 and 7.5 years

6,024

7.0 years from

October 2026

November 2019

7,572

5.5 years from

May 2025

4.0% p.a. + 1-month LIBOR

November 2019

5,668

3.5 years from

June 2025

4.0% p.a. + 1-month LIBOR, subject to

December 2021

minimum interest rate of 5.5% p.a.

2,462 (overdraft,

Since March

Progressive reduction from

5.0% p.a. + 1-month EIBOR, subject to

limit at US$2.6

2019

January 2023 until expiry in

minimum interest rate of 5.5% p.a.

million)

March 2026

2

Relevant Bank, various loans

17,948

6 years as

April 2023

4.0% + 1-month LIBOR, additional

extended,

1.0% for amounts in arrears; consent

effective from

granted for refinancing or sale of

April 2017

assets for repayment by 30 June 2022

3

Mr Mubarak Abdullah Al-Suwaiket,

1,218

5 years from

Repayable in March 2023

10.0% p.a. fixed

i.e. country representative in the

March 2018

Middle East (See announcement

dated 6 April 2018)

4

Car loan

53

4 years from

June 2024

7.45% p.a. fixed

June 2020

Total loan

53,930

5

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Atlantic Navigation Holdings (Singapore) Ltd. published this content on 11 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 March 2022 08:43:04 UTC.