London Biscuits falls into PN17 after default

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KUALA LUMPUR (July 8): London Biscuits Bhd announced today that it has become a Practice Note 17-company, according to the Main Market Listing Requirements of Bursa Malaysia Securities Bhd. 

The company triggered the prescribed criteria after it defaulted on a debt payment to Bank of Nova Scotia Bhd on July 3. The bank has also not been able to provide a solvency declaration to Bursa, London Biscuits said in a stock exchange filing today.

The confectionery manufacturer is required to submit a regularisation plan to the Securities Commission Malaysia or Bursa Malaysia within the next 12 months, depending on whether the plan would significantly change its business direction. 

On Friday (July 5), the company said it had defaulted on the repayment of its RM9.83 million debt to Bank of Nova Scotia. On the same day, it announced a couple of board resignations — as well as the departure of its chief financial officer.

Two days later, chairman Datuk Seri Liew Kuek Hin — who controls 21.73% of the group via private unit Meileelanusa Sdn Bhd — tendered his resignation due to health reasons.
London Biscuits' shares closed at its fresh all-time low of 24 sen today, down four sen or 14.29% from the previous record low of 28 sen apiece, after some 21.46 million shares exchanged hands. 

The current price gives it a market capitalisation of RM69.79 million. Year-to-date, the company’s share price has retreated 52.4% from 51 sen.

Read also: Spotlight on London Biscuits amid default, board resignations