Fiji Sugar Corporation Faces Financial Crisis: Will Government Step In?

The Fiji Sugar Corporation has announced a substantial loss of $5 million in operational costs, alongside a net loss before income tax totaling $23 million, as reported in its annual report for 2023, which covers the period ending May 31, 2023.

The corporation’s total liabilities have surpassed its total assets, resulting in a net liability of $400 million, with current liabilities exceeding current assets by $175.1 million. Additionally, FSC has a debt repayment obligation of $147.2 million for the financial year that concluded on May 31, 2023.

The report further indicates that the corporation requires funding to meet its working capital needs, cover capital expenditures, and address ongoing operating losses. Auditors have expressed concerns that the financial status, high debt levels, and continuous losses suggest that without government assistance, the Fiji Sugar Corporation may struggle to sustain its operations moving forward.

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