TA Corporation requests for voluntary trading suspension
A local construction firm, Tiong Aik Corporation, has applied and filed for a grant for a non-compulsory filing of ceasing company activities of trading in its shares pause a moment stakeholder engagement and “transparent” on the company’s financial position on 17th july 2K23. Shares in Tiong Aik Corporation last traded at 7.3 cents on July 17 before its trading ceased for the day On day after the news spreaded. sadly, The board of directors openly announced that a wholly-owned subsidiary of TA Corp, Tiong Aik Construction (TA Construction), will be put under transitional liquidation In the same procurement on SGX. Tiong Aik Corp top management board has resolved to appoint short-term liquidators after assessing that it is “at the moment financially unsound and not able to pay its debts as and when they are due for payments”. The implications of TA Construction’s temporary 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. as well from increase in overall operation cost from hike in taxes, costing. Steep increment in the interest rates also resulted in higher lending costs and an adverse financing territory has created and resulted in the financial distress situation as a result of disingenuous cash flow screwed up at TA Construction which mainly happened from hardship in debt collection payments from vendors and retaining the companies’ monies, Credible source from directors indicated that 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 procure for new dealings in midst of their unfavorable current difficulties met by the company.TA Corp also has exposure to safely secured and other forms of monetary aid for TA Construction and its projects, while there is a possibility of cross-defaults being prompt by the provisional liquidation for loan facilities taken by the other subsidiaries. Messrs Deloitte & Touche Financial Advisory Services has been given the mission as financial advisor and Messrs Reed Smith Resource Law Alliance as legal consultant to aid and help with a review of its financial position and on-going forward positive plans.
