KUALA LUMPUR (Sept 5): A Memorandum of Agreement (MoA) between ailing China-based sports shoe manufacturer Maxwell International Holdings Bhd and three shoe players aimed at getting the former back to financial health has been terminated.

In a bourse filing, the Practice Note 17 company said its MoA with Mohd Faizol Abdul Karim, NTH Global Sdn Bhd and Opera Marketing Sdn Bhd to explore ways of bringing the company back into the black had been terminated, but did not provide reasons for the termination.

On Aug 16, the group announced it had entered an MoA with Mohd Faizol, who through his wholly-owned business Persada Enterprise is the owner of the EMMETT brand of custom and fashion shoes in Kuala Lumpur.

NTH, owned by Chiew Sai Yean, is involved in the manufacture and trading of shoes.

Opera Marketing has 15 fashion shoe outlets in Malaysia.

The six-month MoA, signed last month, entailed discussions over  the proposed investment and subscription of new shares worth RM40 million by Mohd Faizol, or a nominated fund by him, as well as a proposed rights issue of shares by Maxwell.

In addition, the parties involved would have been looking at the  proposed execution of a business co-operation, development agreement or merger between Opera Marketing (and its group of companies) and Maxwell, and the disposal of Maxwell’s non-productive and inactive businesses for creditor settlement of future business operation purposes.

Maxwell shares were not traded today. At its current price of 1 sen, its market capitalisation is RM4 million.