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February 6, 2008 |
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HARVEST COURT: Court to Hear Summons for Directions on March 18 Harvest Court Industries Bhd's solicitors have filed a petition to seek the confirmation of the High Court of Malaya in respect of the Proposed Share Capital Reduction and Proposed Share Premium Reduction. The Summons for Directions will be heard before the High Court on March 18, 2008. The Troubled Company Reporter-Asia Pacific reported on Jan. 8, 2008, that the proposed share capital reduction involves the reduction of the par value of each existing HCIB share from MYR1.00to MYR0.25 via the cancellation of MYR0.75 of the par valueof each HCIB share of MYR1.00 each. The proposed reduction involves the proposed reduction of the share premium account of HCIB of MYR873,000. Headquartered in Selangor, Malaysia, Harvest Court Industries Berhad -- http://www.harvestcourt.com/ -- is engaged in kiln drying, saw milling and manufacturing of timber doors and related products. Other activities include development of residential and commercial properties and jetty services and provision of construction works and related maintenance services. The Group is also involved in the provision of marketing and management services and investment in shares and securities. The Group operates in Malaysia and Australia. The Group has defaulted on several loan facilities because of a reduction in sales from 2002 onwards due to a weak global market as a result of the Iraqi and the severe acute respiratory syndrome, or SARS, as well as its inability to raise funds via the equity market due to weak market sentiment. Due to its financial position, Harvest Court had embarked on an exercise to restructure, including a debt restructuring and capital reduction. The Company's proposed corporate exercise was rejected by the Securities Commission in November 2005, on grounds that the proposals are not comprehensive and are not capable of resolving all its financial problems. Its appeal to reconsider the rejection was also junked by the Commission on February 24, 2006. The Harvest Court Board is now in talks with lenders and major creditors for its next course of action. Harvest Court Industries Bhd's unaudited balance sheet as of June 30, 2007, went upside down by MYR16.49 million on total assets of MYR35.37 million and total liabilit |
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