KUALA LUMPUR (April 18) : Shares of Hock Lok Siew Corp Bhd (HLS) fell 26% to the stock’s lowest since the audio speaker manufacturer’s listing in August 2000. This follows news that its wholly-owned subsidiary Foremost Audio Sdn Bhd (FASB) has defaulted on RM5.51 million worth of debt obligations.
HLS declined 2.5 sen to seven sen on Wednesday morning before rising to nine sen at 2.58pm with some 4.1 million shares done. The company’s initial public offering had involved 7.8 million shares at RM1.70 each.
HLS said it had on Tuesday received a default notice from CIMB Bank Bhd which plans to take legal action against HLS to recover the outstanding loans. HLS said should CIMB succeeds in its legal action, FASB will be liquidated, and accordingly, HLS will become a Practice Note 17 entity.
The borrower said it will be able to fulfill its debt obligation provided that the audio speaker manufacturer is able to negotiate for a debt-settlement scheme with its lender in the next 12 months.
HLS declined 2.5 sen to seven sen on Wednesday morning before rising to nine sen at 2.58pm with some 4.1 million shares done. The company’s initial public offering had involved 7.8 million shares at RM1.70 each.
HLS said it had on Tuesday received a default notice from CIMB Bank Bhd which plans to take legal action against HLS to recover the outstanding loans. HLS said should CIMB succeeds in its legal action, FASB will be liquidated, and accordingly, HLS will become a Practice Note 17 entity.
The borrower said it will be able to fulfill its debt obligation provided that the audio speaker manufacturer is able to negotiate for a debt-settlement scheme with its lender in the next 12 months.
