The Stock Exchange of Thailand (SET) is requiring All Inspire Development (ALL) to clarify information on its second-quarter financial statement after the auditor didn't express an opinion about the statement, citing uncertainties regarding the company continuing operations.
In a statement yesterday, the SET also recommended investors study ALL's financial statements and monitor the company's clarification regarding its financial results.
According to the bourse, ALL's auditor did not express a conclusion, specifically related to a loss because of cancellation of a land purchase and sale agreement, an impairment loss from deposits for land, and settlement of disputes arising from a breach of a loan agreement from a third party, totalling 1.18 billion baht.
All of those events led to the company posting negative equity of 781 million baht, the statement noted.
Moreover, there is litigation pending regarding ALL's director entering into investment fund agreements on behalf of the company and a joint venture requesting the company comply with an agreement for 758 million baht.
"The SET requires ALL to clarify information via the SET's disclosure system by Oct 12. In addition, investors should study ALL's financial statements and monitor the company's clarification," said the statement.
The SET has posted the C (caution) sign on shares of ALL since Aug 17 because its shareholders' equity was 50% of paid-up capital based on the second-quarter financial results.
Securities marked with the C sign must be purchased with cash balance accounts, meaning brokerages must ensure their customers pay the full amount in cash prior to trading.
ALL has liquidity problems and defaulted on some debentures.
On Aug 2, the company informed the SET it was unable to pay the outstanding principal including unpaid interest of all seven series of bonds, totalling 2.42 billion baht, due on July 31.
The event caused a default in repayment of all remaining bonds, known as a cross-default.
A meeting of the company's bondholders on Aug 2 resolved the bondholders should proceed with a lawsuit for payment.
ALL previously said it expedited the sale of collateral for the debentures and sought other funding sources to repay the debts owed to the debenture holders.
The company expects to report progress on sales of collateral assets, additional funding sources and other solutions by next month.