Bourse rejects application for trading resumption, six-month extension

 

By TEH SHI NING

 

MEMORY Devices is the latest of several companies to face a compulsory delisting.

 

The troubled tech firm has been ordered by the Singapore Exchange (SGX) to delist by April 16, and its joint provisional liquidators (PLs) said yesterday that the firm is currently in no position to propose a cash exit offer.

Its application for trading resumption and a six-month time extension - to finalise agreements relating to a corporate restructuring and creditors' settlement plan - was rejected by SGX. 'Based on the current stage of due diligence conducted, there is much uncertainty as to whether the reverse takeover can in fact be accomplished,' SGX said in a letter to the PLs last Tuesday. The PLs announced last month that talks were underway with an unidentified white knight to stage a reverse takeover of the troubled tech firm.

In yesterday's statement, the PLs said that they are now 'considering the options available to the company' and will provide further updates in due course.

Memory Devices' shares have been suspended since last February, after creditor banks in Hong Kong applied to wind up the firm for not repaying debt. It was then hit with a slew of resignations from five directors, including all three independent directors and its chief financial officer.

Now that its time extension appeal has been rejected, Memory Devices is in a situation not unlike the one that China Printing & Dyeing was in before SGX allowed it to delist without making an exit offer earlier this month. Minority shareholders at Memory Devices could thus find themselves stuck with shares in a debt-ridden private company.

Jurong Tech, on the other hand, recently managed to ward off an impending delisting after SGX granted a time extension for the company to submit a proposal detailing plans for a new business via a reverse takeover, and prove that its shares can resume trading.

Earlier this month, SGX issued delisting notifications to six more companies on its watch-list: ASA Group, Chinasing Investment, Chuan Soon Huat Industrial Group, Fastech Synergy, General Magnetics and Ionics EMS. Ionics has proposed a voluntary delisting with its parent company making a cash offer of 1.5 cents to minority shareholders.

Walao, so long time no news about this, just burnt ?

Currently depressed.  : )  Good time to buy DDR2 Rams for moi's PC.

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