11 June 2012
Octagon Consolidated Bhd defaulted on the credit facility extended by Amanah Raya Capital Sdn Bhd, now classified as PN 17
Octagon Consolidated Bhd's share price fell sharply on Monday after it was declared an affected listed when it defaulted on the credit facility extended by Amanah Raya Capital Sdn Bhd.
At 11.25am, it was down four sen to 4.5 sen. There were 4.79 million shares done.
However, the FBM KLCI was up 9.03 points to 1,579.65. Turnover was 260.99 million shares valued at RM406.51mil. There were 277 gainers, 196 losers and 247 counters unchanged.
Last Friday, Octagon announced had defaulted on the payment and it expected this would have substantial impact on its business, operations and financials of Octagon.
It cautioned the coatings business turnover might be reduced as existing customers could defer new orders.
Other factors were that the material suppliers might request for cash payments for purchases while debtors might likely to prolong the payment of receivables and bankers may recall of existing trade facilities.
Since it has been classified as a Practice Note 17, it had to announce within three months whether the regularisation plan would result in a significant change in its business direction or policy.