Thu, Oct 15, 2020 – 1:39 PM
FRUIT and seafood distributor SunMoon Food Company on Thursday requested its trading halt be converted into a voluntary suspension.
The mainboard-listed company said it needs more time to prepare an announcement to update its shareholders in relation to its parent’s voluntary bankruptcy reorganisation.
SunMoon disclosed on Monday that three entities – Shanghai Yiguo E-Commerce, Shanghai Winchain Supply Chain Management and Shanghai Exfresh Logistic – had been placed under voluntary bankruptcy reorganisation under Chinese law on July 30.
Shanghai Yiguo E-Commerce is the ultimate holding company of Yiguo General Food Pte Ltd, which in turn holds a 59.9 per cent stake in SunMoon.
The Singapore-listed firm’s total accounts receivable amounted to about S$13.2 million, including some S$12.4 million of accounts receivable from the three Yiguo entities.
The deadline to file the creditors’ proof of debt in respect of the bankruptcy reorganisation is Oct 19.
SunMoon’s board on Monday also flagged a going concern issue in view of the reorganisation, and said it might raise funds from investors.
After the announcement, SunMoon shares fell 22.5 per cent to 3.1 Singapore cents, until the company called for a trading halt at 1.41pm on Monday.
Under listing rules, a trading halt cannot exceed three market days or a short extension if the Singapore Exchange agrees to one.
Accordingly, SunMoon’s halt should cease before the end of the midday break at 1pm on Thursday.