JKN bondholders call for SEC probe

JKN bondholders call for SEC probe

Company cancels a crucial meeting

๋Jakkaphong Jakrajutatip, chief executive and managing director JKN Global Group Plc (JKN). (File photo)
๋Jakkaphong Jakrajutatip, chief executive and managing director JKN Global Group Plc (JKN). (File photo)

Bondholders of JKN Global Group (JKN) are asking the Securities and Exchange Commission (SEC) to conduct an in-depth investigation and expedite the seizure of JKN's assets after the company announced the indefinite postponement of a bondholders' meeting.

On Feb 15, JKN announced the postponement of the bondholders' meeting from Feb 22, and the cancellation of the closure of the bondholders' register via the Stock Exchange of Thailand (SET).

According to chief executive and managing director Jakkaphong Jakrajutatip, JKN and its financial advisors are currently in the process of preparing information and consulting with all relevant parties to be presented at the bondholders' meeting, therefore it was deemed necessary to postpone the meeting. However, the company did not specify a new date for the meeting.

Earlier this month, the bondholders sent a letter to the SEC, calling for an investigation into transactions related to the sale of JKN Legacy shares to JKN Global Content (Singapore) and a subsequent agreement to sell 50% of JKN Legacy shares to a strategic Mexican investor.

The SET earlier instructed the owner of the Miss Universe Organisation to explain the rationale and necessity for restructuring the shareholding in JKN Legacy Inc from a direct to an indirect ownership structure, the progress of the payments, the purpose for the proceeds, and the rationale for the company's information disclosure, which is inconsistent with reports in various media.

"Regarding this issue, whether the powers and duties of the company's directors have complied with the SEC's regulations stipulating that investments must be approved by the company's board of directors or not," the bondholders said in a statement.

Given the lack of clarity on many issues the SET has enquired about with JKN, the bondholders have realised that there is unreliability and untrustworthiness. Therefore, the bondholders have asked the SEC to immediately launch an in-depth examination of the financial information of JKN and those involved in the special audit of this case.

The bondholders also asked the SEC to expedite the seizure of assets of the company, directors, and related persons, and that those involved be prohibited from travelling outside the country to prevent any possible inappropriate transfer of assets.

If there is still no clarity on these matters, the bondholders will raise the level of actions to the next step.

"Bondholders implore the SEC to understand the urgent need to stop the damage to bondholders and confidence in the Thai equity and bond markets," the statement added.

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