Leaked KPMG Due Dilligence Report on EHP Warns Against Purchase

This is interesting:

A leaked due diligence report prepared by KPMG for FGV revealed deep concerns regarding the value and sustainability of EHP and raises valid questions on the credibility of the seller in providing complete information to the Indonesia Government and Felda.

KPMG2

EHP IN POOR FINANCIAL POSITION, ALMOST BANKRUPT

From a financial standpoint, EHP has financial liabilities/debts owing to banks of about USD843 million, of which USD127 million is due/has been due for repayment. Its cash in bank is also shockingly low at USD8.3 million as at March 2015, resulting in delayed payments to creditors and small business suppliers due to cash constraints. EHP claimed it was working on a new refinancing plan of USD281.3 million from various banks in Indonesia to cover its existing borrowing repayment obligation and operational expenditure. The question posed from the due diligence is has Felda ensured that Eagle High successfully refinanced its loans prior to Felda’s acquisition? The contravention of financial covenants by EHP on local banks loans would allow the creditors to foreclose.

Full story here: http://ipom.global/2017/06/13/leaked-kpmg-due-dilligence-report-on-ehp-warns-against-purchase/

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