TA Corporation requests for voluntary trading suspension
TA Corporation has raised a permission for a willing filing of ceasing company operation of trading in its shares pause a moment stakeholder engagement and “clarity” on the company’s financial position on 17th july 2K23.
In the same procurement on SGX, the group’s board of management declared that Tiong Aik Construction (TA Construction), a wholly-owned subsidiary of TA Corp, will be put under transitional liquidation.
the management of TA Construction has resolved to appoint temporary liquidators after assessing that it is “presently unable to pay its debts as and when they fall due”.
The whole situation is a result of shrewd cash flow screwed up at TA Construction occured from hardship in debt collection payments from debtors and keeping intact the companies’ monies, as well from the crunched in labor and material which overall increase the companies’ spending.
Steep increment in the interest rates also resulted in higher lending costs and an adverse financing territory. According to credible source from directors, coupled with a decelerate take up rate of for-sale properties developed by TA Corp, this has restricted the momentum to which it is able to continue funding for TA Construction and its capability to source for businesses in midst of their current difficulties met by the company.
Considering the implications of TA Construction’s provisional liquidation and TA Corp’s intention to “engage in a broader and more holistic manner” with its lenders, noteholders, business partners, suppliers and customers, the board has considered it “cautious” to put a elective suspension of trading of its shares in place.
TA Corp also has exposure to parent guarantees and other forms of financial support for TA Construction and its projects, while there is a possibility of cross-defaults being triggered by the provisional liquidation for loan facilities taken by the other subsidiaries.
Messrs Deloitte & Touche Financial Advisory Services has been appointed and give the role as financial advisor and Messrs Reed Smith Resource Law Alliance as legal adviser to assist with a review of its financial position and to advise on the next steps to be taken.
Shares in TA Corp last traded at 7.3 cents on July 17 before its trading ceased on the same day.
