Highlight Bursa rejects Bina Goodyear's regulation plan

by **Cals** Mon 04 Aug 2014, 23:06

Highlight Bursa rejects Bina Goodyear's regulation plan

Business & Markets 2014

Written by Liew Jia Teng of theedgemalaysia.com

Monday, 04 August 2014 21:42

KUALA LUMPUR (Aug 04): Construction firm Bina Goodyear Bhd yesterday saw its proposed regularization plan to move out of Practice Note (PN) 17 status shot down by Bursa Malaysia.

In a filing with Bursa Malaysia today, Bina Goodyear said the regularization plan was rejected as the group and its principal adviser Kenanga Investment Bank Bhd have not satisfactorily addressed the regulator’s concerns on the ability of the proposed restructuring scheme to resolve all problems.

Hence, the trading in its shares will be suspended with effect from next Tuesday (Aug 12).

Bina Goodyear’s shares will also be de-listed on Sept 8, unless an appeal against the rejection of the regularisation plan and de-listing is submitted to the regulator on or before Sept 3, 2014.

Should Bina Goodyear submits the appeal within the timeframe, the removal of its securities from the stock exchange shall be deferred. Failing to do so, its shareholders will be holding shares which are no longer quoted and traded on Bursa Malaysia.

Bina Goodyear also said its board of directors will deliberate on the next course of action and will make the relevant announcement in due course.

In deciding to reject Bina Goodyear’s proposed restructuring scheme, Bursa Malaysia explained that the group continues to rely on its existing business to turnaround financial condition.

"Bina Goodyear has registered continuing losses on a consolidated basis for the past five financial years ended June 30, 2013 and continues to register losses on a consolidated basis for the nine–months financial period ended March 31, 2014," said Bursa Malaysia.

Even with the entry of the new substantial shareholders in December 2011, there are concerns on the ability of Bina Goodyear to sustain and grow the revenue and profitability from its core business, Bursa Malaysia added.