Bursa reprimands Malaysian AE Models & directors, fines MD

PETALING JAYA: Bursa Malaysia Securities Bhd has publicly reprimanded Malaysian AE Models Holdings Bhd (Maemode), six of its directors and fined its managing director Datuk Lim Kee Sinn a total of RM100,000 for the company's failure to make an immediate announcement on the default in payment of a credit facilities.
Bursa Securities said the company and its subsidiaries, AE Automotion (M) Sdn Bhd and Matromatic Handling Systems (M) Sdn Bhd, failed to make an immediate announcement of the default in payment of the syndicated working capital facilities of up to RM400 million from RHB Bank Bhd and Malayan Banking Bhd.
Although Maemode was de-listed on July 2 2014, it said that the breach was committed while the company was listed on the Official List of Bursa Malaysia Securities.
Based on the evidence it procured, Bursa Securities noted that Maemode had defaulted in payment as early as or prior to RHB's letter dated April 16, 2013.
Subsequently, RHB had informed Maemode of the default in payment on June 4, 2013 and that the financiers had demanded payment of the outstanding sum of RM96.08 million due as at May 31, 2013 which represented 39.3% of the Group's net assets at the material time.
However, Maeode only announced the default in payment of the syndicated facility on June 20, 2013.
Bursa Securities said Lim as managing director then had knowledge of the default in payment of the syndicated facility.
"Despite his awareness/knowledge of the default in payment, he had failed to take reasonable efforts to discharge his duties to ensure Maemode make an immediate announcement of the default in payment of the syndicated facility in accordance with the Main listing requirements," it said.
It noted that the five non-executive directors, which includes its chairman Datuk Seri Lokman Hakim Md Jasan, Lim Kee Yin, Low Peng Lum,
Taza Razali Ismail and Ting Siew Haw, should have been aware or were in a position to ascertain the default in payment.
"They had failed to undertake reasonable enquiries to ascertain and disclose the default in payment of the syndicated facility in accordance with the Main listing requirement," it said.