SGX wants Sunvic Chemical to keep equity sale proceeds in escrow

Singapore

SINGAPORE Exchange Regulation (SGX RegCo) has directed Sunvic Chemical to place the 384.6 million yuan (S$77.13 million) proceeds from a proposed equity sale in escrow as it is concerned over the company's unauthorised corporate guarantees which have exposed it to 226 million yuan claims.

SGX RegCo wrote to Sunvic Chemical on Wednesday, saying it has "serious concerns over the questionable circumstances surrounding the unauthorised (and) undisclosed significant corporate guarantees extended to purported third parties".