In addition, its steady decline in its share price has made it ‘unlikely’ that a proposed investment of new shares by two investors, Yuan Zhiwei and Chng Chor Tong, will go ahead.
Last but not least, it can’t see how it can repay its creditors in the coming year, states the company, whose CEO is Siow Chien Fu.
“The Board believes that it is in the best interest of the Company to apply to the High Court of the Republic of Singapore to propose a Scheme of Arrangement for the purposes of implementing and facilitating the restructuring of the debt obligations and liabilities,” states the company in a Feb 13 late night SGX announcement.
In a separate announcement, Capital World has reported losses of RM14.8 million for 2Q ended Dec 2019, a sharp swing from earnings of RM14.9 million in the year-earlier period.
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Revenue in the same period collapsed from RM53.7 million to just RM986,000.
The company’s cash, as at Dec 31 2019, was RM1.6 million, down from RM9.3 million a year earlier.
Its current liabilities as at Dec 31 2019 was RM311.7 million, up from RM213.9 million.
The company’s share price has dropped from five cents a year ago to close at 0.5 cents on Feb 13, valuing the company at just over $9 million.
