KUALA LUMPUR (Feb 12): Perak Corp Bhd's share price slumped below 30 sen in morning trades today after the diversified group said yesterday it became a Bursa Malaysia Practice Note 17 (PN17) company due to bank loan default.

Today, Perak Corp shares slumped as much as nine sen or 24% to 28.5 sen before cutting losses at 29.5 sen at 9:43am among Bursa top decliners.

Perak Corp saw 169,300 shares traded. At 29.5 sen, Perak Corp has a market capitalisation of RM29.5 million.

Yesterday, Perak Corp said in a statement on Bursa's website that the company is unable to declare that it is solvent. "Arising from the default in payment and the company is unable to declare that it is solvent, the company has triggered the prescribed criteria under paragraph 2.1(f) of the PN17 of the listing requirements. The company is in the midst of developing a debt restructuring scheme to manage the debts of the group. The successful completion of the debt restructuring exercise will put the group on a firmer financial footing while relieving its cash flow in the short to medium term," Perak Corp said.

Perak Corp's website indicates that the group has three core businesses involving property development, ports and logistics besides hospitality and tourism operations.

"As an investment holding company, Perak Corp has 21 subsidiaries in its stable, all of which, take on individual roles and functions to contribute to the economic development of Perak," it said.