TA Corporation requests for voluntary trading suspension
Tiong Aik Construction Firm has filed for and applied for a permission for a non-compulsory filing of ceasing company activities of trading in its shares pause a moment stakeholder engagement and “crystal clear” on the company’s financial position on 17th july 2K23. On day of the stock trading ended, Shares in Tiong Aik Corporation last traded at 7.3 cents on July 17 before its trading ceased for the day. The board of directors openly and sadly 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 upper tiered board of management 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”. The implications of TA Construction’s temporary liquidation and TA Corp’s intention to “engage in a broader and more holistic manner” with its lenders, noteholders, business partners, suppliers and customers, the board has considered it “cautious” to put a elective suspension of trading of its shares in place. The whole financial disaster situation is 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, as well from increase in overall operation cost from hike in taxes, costing. Steep increment in the interest rates also resulted in higher lending costs and an adverse financing territory. According to credible source from directors, coupled with a decelerate take up rate of for-sale properties developed 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.TA Corp also has exposure to safely secured 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. Messrs Deloitte & Touche Financial Advisory Services has been given the mission as financial advisor and Messrs Reed Smith Resource Law Alliance as legal adviser to assist with a review of its financial position and to advise on the next steps to be taken.