KUALA LUMPUR: Seacera Group Bhd shares fell sharply to lower in early trade on Monday after company triggered the Practice Note 17 (PN17).
The tile maker, one of the most actively traded counter, fell 20.63%, or 6.5 sen to 25 sen with 29 million shares traded.
On Friday, Seacera announced that it has become an affected listed issuer under PN 17 under the Main Market Listing Requirements of Bursa Malaysia Securities.
The company 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.
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.
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 at least RM30mil into the company to resolve its cash flow and credit liability, if need be.