Multi-Usage says legal review on SPV transactions to be completed in April

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KUALA LUMPUR (Feb 12): Multi-Usage Holdings Bhd (MUH) said the review on further evidence on transactions related to its special purpose vehicle (SPV) is expected to be completed by April.

To recap, some transactions related to its special purpose vehicle (SPV) had led to its auditors raising the going concern flag.

These include the payment on behalf of the SPV to the lenders by a company in which certain MUH directors hold directorship; the signing of a general cash voucher of the SPV by an MUH director, as well as the SPV’s role in helping an MUH director settle his personal guarantee with a financial institution.

MUH said in its exchange filing today that the legal advisor, who the company has appointed, is expected to complete the work within two months from the date of the appointment (Feb 4), and will make further announcements to Bursa Malaysia should there be material developments.

The appointment came after its external auditors Messrs UHY raised the going concern flag in November 2018, as it was unable to obtain sufficient appropriate audit evidence that could draw links between the MUH and its subsidiaries with the SPV, with regards to the transactions and debt restructuring exercises.

Shares in the thinly-traded counter closed 2.5 sen or 5.5% lower at 43 sen today, valuing the company at RM24.26 million.