FHL have no money to pay its cement clinker

Wanna know the truth why FHL is not producing cement any more?

Word from FHL is that the whole group is having cashflow problems after the board paid out almost $30million to BP Oil for a buy-out plan that has gone completely wrong.

They say FHL’s bankers ANZ and Westpac are not giving FHL any relief by freezing a large component of their overdraft facility.

This overdraft restriction was placed on FHL by both banks following FHL’s reckless decision to channel all its available cash towards the payment of BP Oil non-refundable deposit of close to $30 million.

But now that the sale and purchase has flopped followed by the suspension of its senior executives and the company’s impending suspension from South Pacific Stock Exchange, the banks are managing their risk by declining FHL’s overdraft credit line.

Sources also say that FHL’s clinker supplier, the main ingredient for cement manufacturing, has refused to dispatch the raw materials to Fiji without prior payment by FHL.

The supplier is demanding cash on delivery before they can load the raw materials onto the shipping vessel.

In an earlier report, we ran a story on how Merchant Finance, owned by FHL, was not able to pay its staff on time during its last pay day.

Cash is getting very scarce in what was once the Fijian flagship in commerce.