Auditors cast doubts on Dubai-listed Gulf Navigation's $53.8mln insurance claim | ZAWYA MENA Edition
Dubai-based Gulf Navigation Holding seems to be facing uncertainty after including a multi-million-dollar insurance claim, the outcome of which is not certain, in its latest financial results.
The shipping company had earlier seen the loss of its live animal transport vessel Gulf Livestock 1, which sunk off Japan with some cattle and dozens of crew during a typhoon in September.
In its Q3 2020 results, the company mentioned that it has an insurance claim receivable worth 197.5 million UAE dirhams ( $53.8 million) related to the accident.
However, a Deloitte report on the review of interim financial information, which was filed to the Dubai Financial Market (DFM) on Sunday, pointed out that if the claim had not been included as a receivable, the company’s accumulated losses would have exceeded 50 percent of the group’s share capital, thus requiring a general meeting for shareholders to vote on dissolving or restructuring the company.
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