Rejected resolutions risk Seacera to liquidation

By SHAHEERA AZNAM SHAH / Pic By MUHD AMIN NAHARUL

Seacera Group Bhd said the two rejected resolutions in its recent EGM are imminent for the firm to address its financial position and liquidity concern.

In a statement, the group said the firm’s debt obligations to the settlement creditors, financial institutions and working capital requirement are among the urgent motions in the resolutions.

“The board of directors (BoDs) of the company is of the view that the proposals are imminent for it to immediately address the current cashflow position, including the repayment of debt obligations towards the settlement creditors, financial institutions, other creditors and the ongoing working capital requirements.

“Without the proposals, Seacera will be in a grave financial condition, in view of the group’s dire need for funds to address its critical liquidity concerns,” it said in a Bursa filing yesterday.

“As a result of the default in payment and the company’s inability to provide the solvency declaration, Seacera will trigger the prescribed criteria pursuant to Paragraph 8.04 and Paragraph 2.1(f) of PN17 (Practice Note 17) in the listing requirements.

“Thereafter, as an affected listed issuer, Seacera will be required to, among others, regularise its condition within the timeframes permitted by Bursa Securities (Malaysia Bhd),” it said.

It added that by triggering the PN17 criteria, it will result in a potential trading suspension, as well as delisting of the company.

“Failing on the conditions, Bursa Securities may suspend the trading of the company’s listed securities on the sixth market day after the date of notification of suspension.

“It may also delist the company, subject to its right to appeal against the delisting, of which the appeal must be submitted to Bursa Securities within five market days from the date of notification,” it said.

On Tuesday, Seacera’s BoDs had adjourned the firm’s EGM which was supposed to seek shareholders’ approval for the company to undertake a proposed capitalisation and private placement to raise some RM24.6 million, based on share issuance and placement price of 21 sen.

The group said the proceeds will be utilised in settling RM31.38 million of the RM68.04 million debt that the group owes to its creditors.

Also stated in the rejected resolutions, the group plans to issue 149.09 million new shares, as well as 126.34 million shares of its existing issued share capital to third-party investors, of whom have not been identified.

Separately, the group’s single-largest shareholder Datuk William Tan Wei Lian, who holds 16%, had called the EGM to reconvene on May 15 and proposed to remove eight of the 10 existing directors.

“The shareholders have voiced up. We are not pleased with the way the management is running the company.

“We have grounds to believe that they are not following proper corporate governance. Hence, we would like to ensure the company is back on track to tap on the company’s full potential,” he said. 

Tan is proposing to remove eight of Seacera’s current directors and adding in six new directors.

The six new directors who are being proposed are Shirley Tan Lee Chin, Rizvi Abdul Halim, Datin Ida Suzaini Abdullah, Clarence Yeow, Chua Eng Chin and Marzuki Hussain.