The borrowing in this case is not really as much of a problem as putting the white elephants to work. The borrowing relative to construction cost is relatively modest.
The market cap has no relevence on the solvency of the company - other than a vote of no confidence and possibly ruling out a return to the market for capital. A drop in 5c per share with have no impact on solvency whatsever.
If on the other hand you have some analysis showing that the cashflow to 2022 is insufficent to cover the existing project finance cashflow secured against Sengkang, and that the probable cashflow after that date is insufficient to service the remaining debt at 2022, then you should show it. The big risk is strcuturing the slipform debt should Sengkang or Pagbilao both fail.
As discussed before insolvency is unlikely to be the issue. The big issue is that without the white elephants the Enterprise value will be the same as the debt and so the equity value will be NIL.
EWC Price at posting:
9.5¢ Sentiment: None Disclosure: Held
