Trading in the shares of Maxbiz Corp Bhd, which has been suspended since midday last Thursday, is expected to return to normal today.
Chief executive officer Datuk Vincent Leong, in his response to StarBiz’s query, did not disclose the reason behind Maxbiz’s suspension but said it would resume trading today.
Maxbiz, a textile processing company, has defaulted payments on the outstanding loan stocks, arrears and loans.
It told Bursa Malaysia last week that there was no changes in the status of the default in payment in relation to the redemption of 50% of the nominal amount of the RM3mil two-year 5% redeemable unsecured loan stocks from the holders.
There was also no changes in the repayment of arrears of the RM5mil CIMB loan granted by CIMB Bank to M.K.K. Industries Sdn Bhd, a wholly-owned subsidiary of Maxbiz, whereby the amount owing as at Feb 28, 2007 was RM1.7mil, it added.
The status also remained the same for the demand of RM23.07mil (including principal sum of RM22.6mil) as at Oct 8, 2006 with interest of the five-year 2% redeemable convertible secured loan stock 2004/2009 between Maxbiz and Pacific Trustees Bhd.
To recap, Maxbiz had assumed the listing status of second-board company Geahin Engineering Bhd following a restructuring deal in 2004 and was listed on main board on Oct 13, 2004.
After the listing, the company had issued RM22.6mil redeemable convertible secured loan stocks (RCSLS) and RM3mil redeemable unsecured loan stocks (Ruls) to Geahin’s creditors but things started to turn bleak in 2005 when the company defaulted on the Ruls.
Leong said the payment could not be fulfilled as the company could not recover the RM5.7mil accounts receivables inherited from Geahin’s balance sheet.
As for the RCSLS, he said Geahin’s assets that were collaterised to the RCSLS had gone missing, resulting in the company being unable to meet its debt obligations since the first payment that was due in October 2005.
Last week, Maxbiz launched a bid of RM8.8mil to acquire 95% stake in PT Jasa Medivest from Pantai Medivest Sdn Bhd but investors were believed to be more concerned about its inability to service the loans. This continues to weigh down the company’s prospects despite the offer.
MaxBiz yesterday said it had received a directive from Bursa Malaysia Securities Bhd to make an immediate announcement whether the company had triggered any of the Practice Note 17 (PN17) criteria.
The company told Bursa Malaysia yesterday that the directive was received on Dec 30, 2010 based on the former’s letter dated Nov 3, 2010.
Subsequent to an appeal by the Maxbiz, Bursa had, via its the letters dated Nov 10, 2010, instructed the company to appoint its statutory auditors, Messrs Gomez & Co to perform a special purpose audit to assess if the company had triggered any of the PN17 criteria, it said.
Bursa had allowed Maxbiz an extension until Dec 27, 2010 for the auditor to complete and submit its PN17 assessment report to Bursa but the latter again failed to submit the report, the company said.
As such, Bursa Securities deemed the company had failed to comply with the requirements and obligations as stated in the former’s letters dated Nov 10, Dec 9 and Dec 24, 2010 respectively, it added.
MaxBiz said it would be making an appeal to Bursa Securities on this matter.
Update:
Maxbiz Corp, a Malaysian furniture maker, plunged the most in eight months in Kuala Lumpur trading after saying it failed to meet a deadline to submit an auditing assessment of its financial position to the stock exchange. The stock tumbled 33 per cent to 13.5 sen at 9:04 a.m. local time, set for its steepest slump since May 5.
Related Posts:
