Energy Earth stares down SET de-listing

Financially troubled Energy Earth Plc (EARTH) faces a possible de-listing from the Stock Exchange of Thailand (SET) as the company has failed to submit its secondquarter financial statements from 2017 for more than six months.

When listed companies fail to submit required financial statements more than six months after the usual deadline, the bourse will announce their names as possible candidates for de-listing, said the SET statement.

“These listed companies must remedy the situation or they face a possible delisting under Clauses 9(3) and 9(5) of the SET’s de-listing regulations,” said the SET.

Since Energy Earth has failed to submit its second-quarter financial statement ending June 30, 2017, the SET has posted a non-compliance sign on its securities to inform investors about the regulatory problem, and suspended trading of its shares.

Energy Earth can remedy the situation by submitting its financial statements no later than one year after the announced date of the potential de-listing, or by Feb 14, 2019.

“If Energy Earth fails to submit those financial statements by the due date, the SET will propose its board of governors consider withdrawing its securities from the stock exchange,” said the statement.

The SET said if Energy Earth is able to submit those financial statements on time, the company will be required to regain qualification to resume trading within one year.

Energy Earth entered financial straits after failing to redeem two lots of bills of exchange (B/E) worth a combined 90 million baht that were due in June 2017, saying the company’s cashflow had been squeezed after its overdraft line of credit was halted.

Its financial problems snowballed when a raft of its B/Es defaulted, triggering cross-default debentures worth 5.5 billion baht, compounded by its failure to seek fresh sources of funding from financial institutions.

In related news, seven other listed companies have been warned about a possible de-listing of their securities because failures to submit their financial statements for the same period.

Those companies are: Chuo Senko Thailand Plc, The International Engineering Plc, Inter Far East Energy Corporation Plc, KC Property Plc, LV Technology Plc, Polaris Capital Plc and Thai Unique Coil Center Plc.