1. INTRODUCTION
Pursuant to Practice Note 1/2001 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”), LCL had on 10 December 2009 announced that it had defaulted in its payments. The Board of Directors of LCL hereby announces that LCL is considered a Practice Note 17 (“PN17”) Company pursuant to Paragraph 2.1(f) of PN17 as the Company is unable to provide a Solvency Declaration to Bursa Securities (“the First Announcement”).
2. OBLIGATIONS OF THE COMPANY AS A PN17 COMPANY PURSUANT TO PN17
Pursuant to the PN17, LCL is required to comply with the following:(i) within 12 months from the date of this First Announcement:submit a regularisation plan to the Securities Commission (“SC”) if the plan will result in a significant change in the business direction or policy of the Company;
or
submit a regularisation plan to Bursa Securities if the plan will not result in a significant change in the business direction or policy of the Company, and obtain Bursa Securities’ approval to implement the plan;
(ii) implement the regularisation plan within the timeframe stipulated by the SC or Bursa Securities, as the case may be;
(iii) announce within three (3) months from this First Announcement, on whether the regularisation plan will result in a significant change in the business direction or policy of the Company;
(iv) announce the status of its regularisation plan and the number of months to the end of the relevant timeframes on a monthly basis (“Monthly announcement”) until further notice from Bursa Securities;
(v) announce its compliance or non-compliance with a particular obligation imposed pursuant to the PN17 on an immediate basis;
(vi) announce the details of the regularisation plan (“Requisite Announcement”) and sufficient information to demonstrate that the Company is able to comply with all the requirements set out under paragraph 3.1 of PN17 after implementation of the regularisation plan, which shall include a timeline for the complete implementation of the regularisation plan.
The Requisite Announcement must be made by a corporate finance adviser that may act as a principal adviser under the Securities Commission’s Guidelines on Principal Advisers for Corporate Proposals;
and(vii) where the Company fails to regularise its condition, announce the dates of suspension and de-listing of its listed securities immediately upon notification of suspension and de-listing by Bursa Securities.
3. CONSEQUENCES OF NON-COMPLIANCE WITH THE OBLIGATIONIn the event LCL fails to comply with the obligations to regularise its condition, all its listed securities will be suspended from trading on the next market day after five (5) market days from the date of notification of suspension by Bursa Securities and de-listing procedures shall be taken against the Company, subject to the Company’s right to appeal against the de-listing.
4. STATUS OF PLAN TO REGULARISE CONDITIONThe Board of Directors of LCL is looking into formulating a regularisation plan to regularise the financial condition of the Company. Upon completion, the requisite announcement detailing the regularisation plan shall be announced to Bursa Securities in due course.
This announcement is dated 15 December 2009.
