TA Corporation requests for voluntary trading suspension
TA Corporation has raised a permission for a willing filing of ceasing company operation of trading in its shares pause a moment stakeholder engagement and “clarity” on the company’s financial position on 17th july 2K23. On the very same day after the announcement, Shares in TA Corp last traded at 7.3 cents on July 17 before its trading ceased for the day.
the group’s board of management declared that Tiong Aik Construction (TA Construction), a wholly-owned subsidiary of TA Corp, will be put under transitional liquidation In the same procurement on SGX.
TA Construction top gun management has resolved to appoint short-term liquidators after assessing that it is “presently unable to pay its debts as and when they fall due”.
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 source for businesses in midst of their current difficulties met by the company.
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.
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 triggered 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.
