02 February 2014

Eratat - Default on Bond Interest Payment - Jan 2014

Eratat requested a suspension of trading last month, with latest news that the group was not able to make bond interest payment to bondholders and CEO was unable to give satisfied answer despite the fact that the group have sufficient cash in bank account. The corporate news was that CEO Mr. Lin was suspended from his duties and CFO Mr. Ho to be appointed as interim CEO.

To me, this is another bad news coming from S-Chip. It brought to a question that why the group would still want to borrow money from bondholders despite having hundred of millions of cash in the bank account.

I think it will hit the sentiment again for those who hold S-Chip at this moment. To understand what had happened, you may refer to the source below:

Source: http://infopub.sgx.com/FileOpen/Eratat-Announcement_On_Trading_Suspension.ashx?App=Announcement&FileID=272985

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