Rex International Holding Limited 177 NOTES TO THE FINANCIAL STATEMENTS 1 GENERAL INFORMATION (CONTINUED) 1.1 Basis of preparation (continued) On 16 March 2026, the bond trustee for the LPH Bondholders issued a summons for a Written Resolution to Bondholders to approve the facilitation of a potential interim liquidity funding on an expedited basis in anticipation of a comprehensive recapitalisation of LPH, including any interim liquidity measures and in combination with any other remedial measures as deemed appropriate, which includes, inter alia, the engagement of restructuring and additional financial advisors. Notwithstanding the above, the outcome of the Debt Restructuring remains subject to ongoing negotiations and the agreement of the relevant stakeholders. As at the date of the issuance of these financial statements, LPH remains actively engaged in negotiations with the LPH Bondholders and other creditors on the Debt Restructuring. LPH’s ability to meet the repayment obligations of the LPH Bonds and of other creditors as and when they fall due is dependent on the successful completion of the Debt Restructuring, and such matters represent a material uncertainty that may cast significant doubt on LPH’s ability to continue as a going concern. The Company’s directors and management believe that the Company may play a part in LPH’s Debt Restructuring, and is engaging constructively with LPH and its stakeholders. In particular, the Company considers that it may provide important contributions in terms of capital, operational expertise, including in Benin, and stability of ownership. The Company has put forward a proposed plan to the financial and legal advisors of LPH that is non-binding, and subject to regulatory approval (where applicable) and other approvals as required, for the potential benefit of LPH. Depending on the role that the Company may play in the Debt Restructuring, it represents a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern and therefore, the Group may not be able to realise its assets and discharge its liabilities in the normal course of business. However, the directors and management believe that a successful conclusion of the Debt Restructuring will improve the financial position of LPH and enable it to continue operations for the foreseeable future. Hence, the directors and management believe that the going concern assumption adopted in the preparation of the accompanying financial statements remains appropriate. Accordingly, these financial statements do not include any adjustments relating to the realisation and classification of asset and liability amounts that may be necessary if the Group is unable to continue as a going concern. Should the going concern assumption be inappropriate, adjustments may have to be made to (i) reflect the situation that assets may need to be realised other than at carrying amounts; (ii) provide for further liabilities that may arise; and (iii) reclassify non-current assets and non-current liabilities as current. No adjustments have been made in these financial statements in respect of these matters. 1.2 Adoption of new and revised Standards In the current year, the Group and the Company have applied all the new and revised SFRS(I) that are mandatorily effective for an accounting period that begins on or after 1 January 2025. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements.
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