The Stock Exchange of Thailand (SET) has told Stark Corporation to clarify its progress regarding preparation of its 2022 financial statement and a special audit report, as well as issues surrounding the company's bond payment defaults.
The wire and cable manufacturer previously indicated via the SET's disclosure system that it plans to submit the reviewed financial statements for last year by June 16. The company is in the process of appointing a team to conduct a special audit and said it expects to clarify progress on the audit by June 15.
A meeting for Stark bondholders on May 31 resolved that all principal and interest for two bond series worth 2.24 billion baht were due immediately. The resolution caused a cross-default of three other bond series with total outstanding principal of 6.96 billion baht. The company is negotiating with all creditors.
Stark filed a complaint with the Department of Special Investigation and the Central Investigation Bureau under the Economic Crime Suppression Division to conduct a probe and identify offenders for prosecution.
"The company's issues have an extensive impact on investors. The SET requires Stark to update its situation, specifically being called to repay bonds and the resolution to repay its debts. Other creditors may choose to accelerate their debt repayment, similar to the bondholders," the bourse said in a statement.
The company must report progress on such matters by June 13, as well as a timeline for submission of 2022 financial statements and a clarification that the financial statements will be reviewed or audited, said the SET.
If Stark is unable to submit its 2022 financial statements by June 16, as committed, the company must clarify the reason for the delay and issue a timeline for submission. If the company can meet the deadline, it has to commit to a timeline for submitting the audited financial statements for the year as well as the third quarter of 2023, said the bourse.
Stark must also report on progress of the appointment of a team to conduct a special audit, as requested by the Securities and Exchange Commission, together with a timeline for preparing and submitting such a report by June 16.
The SET also told Stark to report on the company's cooperation with government agencies to speed up the investigation to find any offenders, said the statement.
