The board cited the auditor’s concerns that the group could no longer continue.
The Singapore Tourism Board (STB) intends to suspend Asiatravel.com Holdings’ travel agent licence for six months. It gave the company 14 days to submit reasons and show cause against the notice.
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According to an announcement, STB ruled out that Asiatravel.com will not be able to fulfil its financial obligations as the auditor Ernst & Young raised concerns on the continuation of the company and STB said the group is unable to fulfil some of its obligations to business partners and customers.
The company is of the view that there will be no implications on its operations as a result of the notice, Asiatravel.com said. “The company is currently seeking legal advice and will, in consultation with its lawyers, take all necessary steps and measures to vigorously show cause against the notice.”
Asiatravel.com said it will strive to ensure customer bookings are not affected.
In a separate announcement, Wang Yongli has resigned as the non-executive director of the company and will give up his post as a member of the nominating committee and remuneration committee.
Asiatravel.com’s sponsor, RHT Capital is satisfied that there are no other material reasons for the resignation of Wang.