Capital World’s ability to keep operating depends on completing Mustafa mall deal, auditors say
The company claims it has sufficient working capital to meet obligations over next 12 months.
Capital World, a Singapore-based real estate developer, may struggle to operate effectively if it fails to finalize a deal with retail giant Mustafa. The company's auditor, Moore Stephens, revealed in an October 14th filing that the company faces a significant uncertainty in its ability to remain a going concern, contingent on completing the property sale to Mustafa.
The deal involves the acquisition of 591 unsold retail units and other assets at Capital City Mall, a 11-story building housing 12,000 sq ft of retail space. However, the sale remains incomplete, with only 55 units approved for government approval. While the board of Capital World believes the company can continue operations given the expected completion of the deal, recent deposits received from Mustafa and deferred payments to creditors do not fully alleviate the auditor's concerns.
The company is also involved in various legal proceedings involving property purchasers, adding to its challenges.
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