KUALA LUMPUR: Shares of HOVID BHD [] fell in active trade on Monday, Nov 1 after it triggered the Practice Note 17 after its subsidiary CAROTECH BHD [] defaulted on the repayment of certain borrowings.
At 3.31pm, Hovid was down 5.5 sen to 13 sen. Carotech fell two sen to five sen and it was the most active with 36.86 million shares done.
The FBM KLCI was up 1.38 points to 1,507.04. Turnover was 825.72 million shares valued at RM932 million. There were 337 gainers, 430 losers and 267 stocks unchanged.
Last Friday, Oct 29, Hovid said Carotech had defaulted on the repayment of certain borrowings which were due to be paid during the financial year ended June 30, 2010.
Carotech had also sought the assistance of Corporate Debt Restructuring Committee (CDRC) to mediate between Carotech and its lenders on its Proposed Debt Restructuring scheme.
The lenders of Carotech are reviewing and considering the proposed scheme but no decision has been made as at the date the financial statements for the financial year ended 30 June 2010 were approved by the board.
'Without having the approval of the lenders for the Proposed Scheme and various uncertainties at present, the auditors of Carotech expressed a disclaimer opinion on the financial statements for the financial year ended June 30, 2010,' it said.
Hence, Carotech triggered the prescribed criteria of Guidance Note No. 3 of the Bursa Securities ACE Market Listing Requirements.
'Considering Carotech is a significant subsidiary in the Hovid Group of companies as at 30 June 2010, the auditors of the company has expressed a disclaimer opinion on the financial statements for the financial year ended June 30, 2010,' it said.
Hovid said since August, it sold 180 million Carotech shares or 19.73% for RM12.60 million.'' Consequently, its stake in Carotech was reduced to 38.45%.
It also said Carotech would no longer be a subsidiary of Hovid and the significance of Carotech in the Hovid Group would drastically be reduced in the financial year ending June 30, 2011.
At 3.31pm, Hovid was down 5.5 sen to 13 sen. Carotech fell two sen to five sen and it was the most active with 36.86 million shares done.
The FBM KLCI was up 1.38 points to 1,507.04. Turnover was 825.72 million shares valued at RM932 million. There were 337 gainers, 430 losers and 267 stocks unchanged.
Last Friday, Oct 29, Hovid said Carotech had defaulted on the repayment of certain borrowings which were due to be paid during the financial year ended June 30, 2010.
Carotech had also sought the assistance of Corporate Debt Restructuring Committee (CDRC) to mediate between Carotech and its lenders on its Proposed Debt Restructuring scheme.
The lenders of Carotech are reviewing and considering the proposed scheme but no decision has been made as at the date the financial statements for the financial year ended 30 June 2010 were approved by the board.
'Without having the approval of the lenders for the Proposed Scheme and various uncertainties at present, the auditors of Carotech expressed a disclaimer opinion on the financial statements for the financial year ended June 30, 2010,' it said.
Hence, Carotech triggered the prescribed criteria of Guidance Note No. 3 of the Bursa Securities ACE Market Listing Requirements.
'Considering Carotech is a significant subsidiary in the Hovid Group of companies as at 30 June 2010, the auditors of the company has expressed a disclaimer opinion on the financial statements for the financial year ended June 30, 2010,' it said.
Hovid said since August, it sold 180 million Carotech shares or 19.73% for RM12.60 million.'' Consequently, its stake in Carotech was reduced to 38.45%.
It also said Carotech would no longer be a subsidiary of Hovid and the significance of Carotech in the Hovid Group would drastically be reduced in the financial year ending June 30, 2011.
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