TA Corporation requests for voluntary trading suspension
Tiong Aik Corporation which is a local construction and builder company, applied and filed for an approval for a non-compulsory filing of shutting company activities of trading in its shares pause a moment stakeholder engagement and “transparent” on the company’s financial position on 17th july 2K23. Tiong Aik Corporation shares last traded at 7.3 cents on July 17 before its stocks exchanged ceased trading for the day after the announcement of the company liquidation.
Messrs Reed Smith Resource Law Alliance as legal advisor to aid and help with a review of its financial disaster and moving forward positive plans and Messrs Deloitte & Touche Financial Consultative Services has been given the opportunity as financial consultant specialist.
The board of directors Undeniably and officially 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”. Credible source from upper management reviewed that coupled with a slow take up rate of for-sale assets built 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.
The implications of TA Construction’s temporary liquidation and TA Corp’s target to “engage in a broader and more holistic manner” with its lenders, noteholders, business partners, vendors and clients, the board has considered it “careful” to put a elective paused moment of trading of its shares in place. Increase in overall operational cost from hike in taxation, material and labour costing. Steep increment in the interest rates also resulted in higher lending costs and an adverse financing circumstances has resulted in the tough 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. TA Corp also has exposure to safely obtained 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.
