Global Yellow Pages to terminate debt-ridden Singapore River Water Taxis project

Singapore River Explorer has an outstanding loan worth $6.3m.

Global Yellow Pages revealed that it will cease to operate the Singapore River Water Taxis project once its tenure ends on December 31, 2015.

The project is operated by Singapore River Explorer (SRE), as well as a consortium led by Global Yellow Pages. The company holds a 50% stake in SRE.

Global Yellow Pages said that SRE owes it an outstanding loan in the sum of S$5.9 million in principal amount and S$0.4 million in interest.

"In addition, the Company has also provided a corporate guarantee to secure SRE's repayment obligations to a third party lender and the Board understands that the amount currently owing by SRE to the Lender is approximately S$850,000," the company said in its statement ot the SGX.  

"The Board is presently taking advice on the recovery of these outstanding amounts and the guarantee. Based on the above, if SRE is unable to meet its repayment obligations to the Company and the Lender due to the cessation of the operation of the Project, this is likely to have a material impact on the Group's performance for the financial year ending 30 June 2016," the company added.