HL Global Enterprises receives one-year extension on S$75m loan

Venture Lewis grants much-needed reprieve.

In a disclosure to the SIngapore Exchange, the struggling HL Global Enterprises admitted that it continues to face difficulties in obtaining financing from financial institutions and had requested Venture Lewis to further extend its outstanding 2012 loan.

"The highly competitive hospitality market and the high inflation rate in Shanghai and Qingdao are expected to continue to affect the performance of the Group," said HL Global Enterprises. "In addition, the slow down in China’s economy and the recent territorial tension between Japan and China will also affect the Group's operations in Shanghai and Qingdao."

Based on the unaudited consolidated accounts of the Group for the nine months ended 30 September 2012, HL Global Enterprises recorded a loss of approximately S$2.7 million for YTD 3Q2012, had negative working capital of approximately S$52.6 million as at 30 September 2012; and had deficits in shareholders’ equity of approximately S$6.1 million as at 30 September 2012.

This dire financial position and performance led HL Global Enterprises to request for the extension of the Venture Lewis loan.