STO reassures shareholders after merger with debt-ridden fisheries company
The State Trading Organisation, the largest state-owned enterprise and the country’s primary wholesaler, has assured its shareholders that a merger with the debt-ridden state fisheries company will not result in losses.
04 Oct 2016, 9:00 AM
The State Trading Organisation, the largest state-owned enterprise and the country’s primary wholesaler, has assured its shareholders that a merger with the debt-ridden state fisheries company will not result in losses.
Managing Director Ahmed Shaheer told the press on Monday that Maldives Industrial Fisheries Company’s MVR300 million (US$19 million) debt will not affect STO as the tuna exporter will operate as a subsidiary company.
“MIFCO will be carried forward separately as a separate company in a manner that won’t impact STO,” he said. “Improving a company in such a state will be a challenge. But this is an experienced team.”
He added that MIFCO’s unpaid loans would be settled through a debt restructuring process, which will be worked out in consultation with the government.
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