Seacera now a PN17 company

Seacera Group Bhd, which has become a Practice Note 17 company, saw 22.91 million of its shares crossed in an off-market deal on Monday.

KUALA LUMPUR: Seacera Group Bhd has become an affected listed issuer under Practice Note 17 (PN 17) under the Main Market Listing Requirements of Bursa Malaysia Securities.

It said on Friday that it had triggered the prescribed criteria after it defaulted in the payment of principal and profits to AmBank Islamic Bhd and it was also unable to provide a solvency declaration to Bursa Securities.

Trading in the securities of Seacera was halted at 11.48am on Friday. The tile maker's share price was flat at 31.5 sen before its request for voluntary suspension.

The tile maker has 12 months to regularise its financial condition. It also has to submit a regularisation plan to the Securities Commission if the plan will result in a significant change in the business direction or policy of the company.

It will have to submit a regularisation plan to Bursa Securities if the plan will not result in a significant change in the business direction or policy of the company and obtain Bursa Securities’ approval to implement the plan.

Seacera has three months from the first announcement, on whether the regularisation plan will result in a significant change in the business direction or policy of the company.

“The company is looking into formulating a regularisation plan to address its PN17 status and will make the necessary announcement on the regularisation plan in due course,” it said. 

Earlier, Seacera has warned that it is potentially headed towards a default on its payment obligations in the highly likely event that it will not be able to proceed with its settlement proposals in time.

However, Datuk William Tan Wei Lian, the single largest shareholder of Seacera with a 16.4% stake, pledged to inject RM30mil, or more into the company to resolve its cash flow and credit liability, if need be. 

The company had attracted interest following Tan's move to call for an EGM to remove several directors.

In the latest development, Seacera announced that its application for injunction in respect of the notice of EGM issued by Tan and three others was heard on Thursday before the High Court judge.
 
Seacera had withdrawn the application on the undertaking provided by Tan and three others that "they will not jointly or severally issue any fresh notice of EGM until and unless they are members of at least 10% of the company".
 
Apart from that, Tan and three others had also withdrawn the notice of EGM dated April 15, which the company reserves its rights.