KUALA LUMPUR: Share prices of CAROTECH BHD [] and its main shareholder HOVID BHD [] fell in active trade on Friday, July 2 on negative news about Carotech's defaulting on the principal and interest servicing for certain loans.
At 9.31am, Carotech was down four sen to 9.5 sen while Hovid lost 2.5 sen to 18 sen.
The FBM KLCI fell 2.96 points to 1,305.80.
Carotech said on Thursday the Corporate Debt Restructuring Committee (CDRC) had accepted its application to mediate between the company and its financial creditors on its proposed debt revamp. The CDRC has allowed the company six months to complete the scheme.
Hovid, which owns 58% of Carotech, said the latter had defaulted on its principal and interest servicing in respect of certain banking facilities from financial institutions.
Hovid said the default arose mainly due to over expansion of capacity, significant rise in working capital and inability to clear stocks due to curtailed demand arising from poor economic conditions in Europe and US. Nevertheless, Carotech's underlying business model and products remain sound and well received in the markets, it added.
Hovid said it did not have any obligation on the defaulted loans by Carotech.
At 9.31am, Carotech was down four sen to 9.5 sen while Hovid lost 2.5 sen to 18 sen.
The FBM KLCI fell 2.96 points to 1,305.80.
Carotech said on Thursday the Corporate Debt Restructuring Committee (CDRC) had accepted its application to mediate between the company and its financial creditors on its proposed debt revamp. The CDRC has allowed the company six months to complete the scheme.
Hovid, which owns 58% of Carotech, said the latter had defaulted on its principal and interest servicing in respect of certain banking facilities from financial institutions.
Hovid said the default arose mainly due to over expansion of capacity, significant rise in working capital and inability to clear stocks due to curtailed demand arising from poor economic conditions in Europe and US. Nevertheless, Carotech's underlying business model and products remain sound and well received in the markets, it added.
Hovid said it did not have any obligation on the defaulted loans by Carotech.
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