Advance SCT collaborates with consulting firm to turn company around

Advance SCT collaborates with consulting firm to turn company around

By: 
Gwyneth Yeo
27/06/16, 06:23 pm

SINGAPORE (June 27): Advance SCT on Monday entered into a binding heads of agreement with BT Consulting & Management to study the various options to resolve its outstanding debt issues and undertake a strategic business review to revive its ailing business.

Apart from looking at various options to resolve its debt, the collaboration will also involve exploring the acquisitions of new assets and undertakings that are earnings and yield accretive for Advance SCT, the supplier of copper-based products.

Furthermore, BT Consulting will also provide up to $8 million of funding for the strategic review and to meet immediate working capital requirements of its existing commodities business.

BT Consulting will subscribe to $3 million worth of new shares and $5 million worth of convertible securities.

Advance SCT had applied to the Singapore High Court in February to enter into a scheme of arrangement to repay its debt. The court has yet to sanction the latest scheme.

The placement exercise is subject to the approval of Advance SCT’s shareholders.

For the 1Q ended March, Advance SCT losses widened to $1.34 million from $942,000 a year ago. Revenue dropped to $1.43 million from $12.9 million following a downsizing of its business to lower its debt level.

At the end of March, Advance SCT’s cash and cash equivalent dwindled to $400,00 from $5.32 million a year ago.

Advance SCT shares have been suspended from trading since Jan 12.

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