PACE may postpone fair value report for regulator

Pace Development Corporation Plc (PACE) is considering postponing a clarification of the fair value measure of its investment projects, as demanded by the Securities and Exchange Commission (SEC), because the company’s financial adviser remains under evaluation.

Pace is coordinating with the SEC to postpone the clarification to Jan 31.

“The financial advisory is still studying the evaluation of the assumptions in its fair value measurement. It plans to gather more information and interview the management of the MahaNakhon Observation Deck project, including a consultant company hired [to assess] assumptions used in the fair value measurement of the company’s investment,” Pace said in its statement.

“Due to the complexity of the investment the financial advisory company has requested to extend the time frame to proceed with the plan.”

If the fair value measurement report is completed, Pace also needs more time to review and understand the report to ensure it is evaluated appropriately.

“If results of the fair value measurement change, the company will need to adjust [its] financial statement accordingly,” said the statement.

The SEC in November asked Pace to clarify the assumptions used to determine the fair value of two investment projects, as the valuation process affects the company’s financial statements.

“Pace’s auditor has not provided a conclusion on the company’s consolidated income statements in the second and third quarters of 2017 because the auditor could not conclude an assessment of the fair value of Pace Project One Co and Pace Project Three Co on the revenue projection of MahaNakhon Tower, the assumptions for which were based on estimated future revenue,” the SEC said in a release.

Instead, Pace used the estimated income to record an investment amount of 8.23 billion baht and recognised a gain of 8.9 billion baht from a loss in control of a subsidiary, according to the SEC.

In related news, Pace yesterday extended the rights for newly issued ordinary shares to Jan 19 in order for shareholders to have time to study relevant information that could affect investment decisions.

PACE shares yesterday closed on the SET at 0.51 satang, unchanged, in trade volume worth 7.34 million baht.

Separately, financially beleaguered Energy Earth Plc has informed the SET the company’s business rehabilitation planner may request an extension with the Central Bankruptcy Court if the rehabilitation is not complete within three months from Nov 24.

“If the plan is not completed within the specified period, the planner may request up to two extensions with the Court, each for a period of one month,” said Energy Earth in its statement.

Some 2,433 Energy Earth creditors have applied for debt repayment totalling 152.5 billion baht.