Kenyataan Media
BURSA MALAYSIA SECURITIES PUBLICLY REPRIMANDS MALAYSIA PACIFIC CORPORATION BERHAD FOR BREACH OF LISTING REQUIREMENTS
Bursa Malaysia Securities Berhad (Bursa Malaysia Securities) has publicly reprimanded Malaysia Pacific Corporation Berhad (“MPCORP” or “the Company”) for breaching paragraphs 9.03(1) and 9.04(l) of the Listing Requirements of Bursa Malaysia Securities (LR) read together with paragraph 2.1(d) of Practice Note 1/2001 (PN1) for failing to make an immediate announcement in respect of the default in payments of the overdraft and revolving credit facilities granted by RHB Bank Berhad (RHB) to MPCORP.
Pursuant to paragraphs 9.03(1) and 9.04(l) of the LR and paragraph 2.1(d) of PN1, a listed issuer must make an immediate announcement of default in payments of either interest or principal sums or both in respect of a credit facility where the credit facility is 5% or more of the net assets of the listed issuer.
The public reprimand was imposed pursuant to paragraph 16.17(1) of the LR after taking into consideration all facts and circumstances of the matter and upon completion of due process.
While Bursa Malaysia Securities has not found any of MPCORP’s directors to have caused or permitted the breach by the Company, Bursa Malaysia Securities wishes to highlight that it is the duty of the directors to maintain appropriate standards of responsibility and accountability in ensuring compliance of the listing requirements. The Board of Directors of MPCORP at the material time of default were as follows:-
- Seow Thiam Fatt
- Datuk Kamaruddin Bin Taib
- Teh Leong Kiat
- Dato' Abdul Karim Bin Marzuki
- Ch'ng Soon Sen
- Datin Kong Yuk Chu
- Dato' Syed Hussien Bin Abd Kadir
- Wong Seng Huat
Bursa Malaysia Securities views the contravention seriously and has reminded MPCORP and its Board of Directors of their obligation to uphold appropriate standards of responsibility and accountability to shareholders and the investing public.
BACKGROUND
MPCORP had on 12 March 2013 announced the default in payment of principal and interests on the overdraft and revolving credit facilities granted by RHB.
However, it was noted that:
- RHB had vide letter dated 12 February 2007 informed the Company of the excess in its overdraft facilities where its two current accounts were in overdrawn position by RM629,215.85 as at 31 January 2007 and had exceeded the approved overdraft limit of RM43,000.000 due to interests in arrears since 30 November 2006. In addition, RHB’s solicitors, Messrs Azhar & Goh had on 18 February 2008 issued a letter of demand (LOD) to demand payment of the overdue interest in relation to the overdraft facilities of RM3,691,908.53 as at 31 January 2008; and
- Messrs Azhar & Goh had also issued a LOD dated 27 February 2008 where the solicitors had demanded the payment of the outstanding sum of RM29,132,518.05 due as at 31 January 2008 in respect of the revolving credit facilities of RM25,704,110.94.
The total overdraft and revolving credit facilities (including interests) in default amounting to RM76,224,426.58 as at 31 January 2008 represented approximately 49% of the Company’s net assets of RM156,116,000 and 44.2% of the Company’s total borrowings of RM172,308,000 as at financial year ended 30 June 2007.
In addition, MPCORP’s share price had also decreased by RM0.06 / 16.4% from RM0.365 on 12 March 2013 to RM0.305 on 13 March 2013, i.e. the next market day upon the PN1 announcement made by the Company.