Pacific Star, Inch Kenneth Kajang Rubber to delist
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CATALIST-LISTED property developer Pacific Star Development is set to delist on Monday (Jun 19), the company said in a bourse filing on Friday.
The move comes more than three years after trading of the company’s shares was suspended following the resignation and bankruptcy of its former controlling shareholder Chan Fook Kheong, who was also group chief executive and managing director.
Separately, Inch Kenneth Kajang Rubber is delisting on Jun 21. The owner of oil palm plantations and operator of tourism resorts this week received a delisting notification from the bourse, which noted the company’s prolonged suspension since January 2015 and absence of plans to resume trading.
Pacific Star’s trading suspension on Mar 24, 2020 came after Chan’s resignation, which constituted a change of control under the terms of a S$70 million loan facility provided by a group of lenders in December 2018.
The change of control allowed the lenders to immediately require the mandatory prepayment of the loan, including accrued interest and other amounts accrued in relation to the loan, the group said.
As the company was unable to obtain a waiver from the lenders in relation to the change of control, its board of directors requested for the suspension to prevent irregular share price movements.
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After the suspension and up until Mar 31, the lenders provided S$38 million of additional financing to the company, which gave it the necessary runway to resolve the issues that it was facing, including the unsold condominium units at its Iskandar Puteri development.
The development drew media attention after it turned into somewhat of a ghost town despite being over-developed.
Separately, the Covid-19 pandemic and macroeconomic challenges, including the Russia-Ukraine war, global supply-chain disruption and interest rate hikes, affected the group’s recovery and timeline for the relevant restructuring and submission of a proposal to resume trading.
“Although the gears for our group’s restructuring were in motion, time had run out and eventually our latest extension of time request to submit the company’s resumption of trading proposal was not approved,” the company said.
Last month, the group said it was unable to provide an exit offer as the company was neither in a position, nor did it have the financial resources to do it.
Post-delisting, the group’s independent directors Leow Chin Boon and Lim Hoon Tong will step down. Another independent director, Yeong Wai Cheong, had already stepped down on Tuesday.
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