Global Carriers falls 14% on delisting risk

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KUALA LKUMPUR (Oct 17): Practice Note 17 (PN17) entity Global Carriers Bhd declined 14.3% on possible share trade suspension and delisting of the shipping firm's securities.

This follows Global Carriers' failure to submit its regularisation plan to Bursa Malaysia within the stipulated time frame. At 12.30pm, Global Carriers declined 0.5 sen to three sen, albeit, on thin trades of 30,000 shares.

Yesterday, Global Carriers announced that exchange regulator Bursa Malaysia would suspend the company's share trade with effect from this October 27.

Bursa Malaysia will delist Global Carriers on October 29 unless the latter submits an appeal to the former on or before October 24.

According to Global Carriers, Bursa Malaysia has also rejected its application for time extension to submit its regularisation plan.

Global Carriers was declared a PN17 company in March last year after its shareholders equity fell to RM40 million. The figure was less than 25% of its issued and paid-up capital.

Global Carriers has been grappling with debt. In July last year, it was reported that the company was preparing a regularisation plan to reach a consensus with its lenders.

The consensus was to restructure Global Carriers' debt and to regularise its financials, and business operations.