FSC defaulted on $25m FNPF repayments
January 18, 2021 1:01 pm
The Fiji Sugar Corporation’s current liabilities exceed its current assets by $144.4m. [File Photo]
The Fiji Sugar Corporation’s current liabilities exceed its current assets by $144.4m.
According to the 2020 Annual Report, FSC also has a debt repayment commitment of $142.4m for the financial year ending 31st May 2021.
The report also states the Corporation is likely to require further funding to meet its working capital requirements, capital expenditure and possible future operating losses.
Auditing firm Ernst and Young points out that loans from the government total $173,816,930 which will be converted into equity in the next financial year.
It was also highlighted that the financial position and the debt levels of FSC, indicate that without government support the Corporation will not be able to continue.
During the year, FSC also defaulted on the Fiji National Provident Fund bond repayments.
Corporate bonds of $15m and $10m matured on 30th September 2019 and 4th November 2019 respectively.
Since FSC did not meet the repayment, the FNPF called in the government guarantee and the repayment obligation was passed onto the State.
FSC also borrowed $47.5m from Czarnikow Group Limited by way of trade finance to meet operational expenditure and cane grower payments.