AWT shares up strongly despite $170m in creditor claims

PUBLISHED : Tuesday, 22 September, 1998, 12:00am
UPDATED : Friday, 28 October, 2016, 9:17am

Shares in freight forwarder AWT Holdings rose 9 per cent to 2.4 cents yesterday despite facing claims from its creditors for $170 million.

Uncertainty enveloped the company yesterday when it revealed its overall financial position would depend on the outcome of negotiations with its creditors.

The firm said its property arm was suffering cash-flow problems while its core business - freight forwarding - still had working capital.

It said it had utilised a combined $125 million banking and finance facility.

To alleviate cash-flow problems, AWT said it planned to sell certain properties subject to creditors' approval.

The company said one of its secured bank creditors had exercised its power last month to sell 36 car parks.

AWT is also facing a $90 million contingent liability arising from its property arm's alleged breach of a property contract.