On top of dwindling orders, weak cash position.
Things are heading south quickly for Cosco Corp Singapore (Cosco) as analysts outlook grow more bearish over the business leveraged position, problematic cash flow, and complicated restructuring efforts.
According to a report by OCBC, new orders have dwindled for the group. The past few years have seen Cosco executing its order book with cost overruns as it struggles to scale the offshore learning curve.
Coupled with continued bank borrowings, this has landed Cosco in a significantly leveraged position just as the industry is slammed by a downturn.
Further, Cosco has reported negative operating cash flow each year for the past seven yearsCosco has essentially been propped up by ba…
Read the full article at: http://sbr.com.sg/shipping-marine/news/outlook-cosco-crumbles-amid-complicated-restructuring-deal