KUALA LUMPUR (May 30): Seacera Group Bhd says today it is required to fully settle the outstanding amount of RM31.82 million owed by its 20%-owned associate SPAZ Sdn Bhd to Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) following a notice from the lender.

In a statement to Bursa Malaysia today, Seacera said it is the corporate guarantor for loans granted to SPAZ, and is required to fully settle the outstanding amount within 14 days from Tuesday (May 28).

"The company wishes to announce that Seacera, a corporate guarantor for facilities granted to SPAZ, a 20% associate company, has received on May 30, 2019 a notice of demand cum termination dated 28 May 2019 from SME Bank, demanding a payment of RM31.82 million in respect of total amount outstanding and due payable under the Bank Guarantee (Kafalah) and Commodity Murabahah Revolving Financing-i (CMRF-i)," Seacera said.

Seacera said if it failed to settle the outstanding amount within the stipulated time frame, SME Bank "shall proceed with necessary action as deemed fit and all costs to be incurred by the company".

In a separate statement to the bourse today, Seacera said trading in its securities would be halted between 2:30pm and 3:30pm today. "Your attention is drawn to Seacera's announcement dated 30 May 2019," the group said.

Prior to the trading halt, Seacera shares settled up 0.5 sen or 2.17% at 23.5 sen at 12:30pm. The stock saw 3.68 million shares transacted.