Source: The Edge
Kinsteel Bhd has announced that trading in its securities will be suspended effective from next Friday (Jan 5) after it failed to submit its regularisation plan to the regulators for approval within the stipulated time frame.
Its application for a further extension of time for submission was also rejected.
The Practice Note 17 (PN17) company also said it risks having its securities delisted on Jan 9 unless it submits an appeal against the delisting with Bursa Securities on or before Jan 4.
On Oct 23, Kinsteel said it had requested for a time extension to submit its regularisation plan by April 30 next year.
Upon the delisting of the company, Kinsteel will continue to exist but as an unlisted entity, the steel maker said in a bourse filing yesterday.
“The company is still able to continue its operations and business and proceed with its corporate restructuring and its shareholders can still be rewarded by the company’s performance,” the group said.
“However, the shareholders will be holding shares which are no longer quoted and traded on Bursa Securities,” it added.
Yesterday, Kinsteel settled unchanged at 2.5 sen, giving it a market capitalisation of RM26.04 million.
Most recently, Kinsteel’s external auditor Messrs Crowe Horwath expressed a disclaimer of opinion in the company’s audit report for the financial year ended June 30, 2017 (FY17), on the basis of the steel manufacturer’s ability to continue as a going concern.
Kinsteel posted a net loss of RM343 million in FY17. As at June 30, 2017, its current liabilities had exceeded its current assets by RM961.5 million. Crowe Horwath had also pointed out the figure has since climbed to RM696 million.
The disclaimer of opinion was also due to the recoverability of monies and receivables owed to Kinsteel, including RM107.5 million owing by a subsidiary of an associaten — Perwaja Holdings Bhd.
The group had blamed the weaker financial results mainly on the decline in the production of steel products as the group was in the midst of restructuring its debts with its lenders, as well as the difficulty in obtaining further credit facilities to procure raw material from suppliers.