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Darco Water Technologies Faces Financial Covenant Breach with Subsidiary

Story Highlights
  • Darco Water Technologies Ltd. operates in the water treatment industry, providing solutions for water management.
  • The company’s subsidiary breached financial covenants, risking default and immediate repayment demands.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Darco Water Technologies Faces Financial Covenant Breach with Subsidiary

Darco Water Technologies Ltd. ( (SG:BLR) ) has issued an update.

Darco Water Technologies Ltd. announced that its subsidiary, Darco Ba Lai Water Supply Limited, has breached certain financial covenants related to its loan agreement. The breach, which involves the debt-service coverage ratio, current payment index, and debt-to-equity ratio, could lead to an event of default, allowing the bank to demand immediate repayment of VND40.6 billion. The company is in discussions with the bank to remedy the situation or obtain a waiver, and is assessing the potential impact if a waiver is not granted.

More about Darco Water Technologies Ltd.

Darco Water Technologies Ltd. is a company based in Singapore, operating in the water treatment industry. The company focuses on providing water and wastewater treatment solutions, catering to various sectors that require efficient water management services.

YTD Price Performance: -8.33%

Average Trading Volume: 43,750

Technical Sentiment Consensus Rating: Buy

Current Market Cap: S$6.19M

Learn more about BLR stock on TipRanks’ Stock Analysis page.

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