Medtecs International asks Resilient Medical to pay $30.65m outstanding balance

They are given only 21 days to pay their outstanding balance.

The Medtecs International Corporation Limited has issued a statutory demand to Resilient Medical to immediately pay its outstanding balance worth $30.65m (US$22.76m).

In a bourse filing, Medtecs noted that it will present a wind-up application for Resilient Medical if it fails to pay the amount back within 21 days.

Medtecs International pointed out that as of 30 June 2024, Resilient Medical has total assets of $39.61 (US$29.45m) whilst its liabilities stood at $38.91m (US$28.93m). In addition, Resilient Medical also reported a net loss of $1.8m (US$1.34m).

Medtecs (Asia Pacific) Pte. Ltd. (MAP), a wholly-owned subsidiary of Medtecs International Corporation Limited, entered a joint venture (JV) on 2 March 2021 with ACO International Limited (ACO) to manufacture and sell personal protective equipment through Resilient Medical.

MAP and ACO have invested to Resilient Medical 66.7%, equivalent to $8.06m (US$6m), and 33.3%, equivalent to $4.03m (US$3m), respectively.

Medtecs has also agreed to provide up to $20.15m (US$15m) in project financing for JV business under the terms of an entrusted procurement and payment agreement between Resilient Medical, the company, and Medtecs (Taiwan) Corporation.

The company, however, noted that since 2021, the nitrile glove factory and the JV business has experienced "slow sales and continued to record losses year-on-year."

The income generated from the factory was insufficient to cover the operating expenses of the JV Business and Resilient Medical, leading to further funding.

In February 2023, the board approved an increase of $6.72m (US$5m) in financing for Resilient Medical, bringing the total financing under the agreement to $26.88m (US$20m).

Medtecs said despite extensive efforts to work with ACO to develop and implement a recovery plan for the JV Business, the efforts were "unsuccessful as no viable recovery plan could be agreed upon."

($1 = US$0.74)

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