Kenmark: Sorry But I Was Sick

I can't go to school... I am sick!!!

Isn't that your favourite excuse not to go to school?

But when you hear the MD... sorry... no the ex-MD using this excuse... it's really, really, really pathetic. Who's kidding who?

Ok.. perhaps I was being nasty there. Perhaps he is legitimately sick but do consider the following facts... let me paste from a news clip..

On May 12, the company revealed that EXIM Bank had issued letters of demand to:

• Kenmark’s wholly owned subsidiary Billion Dynamic Sdn Bhd for a sum of RM43.77 million for failing to regularise a credit facility of RM40 million;


• Kenmark itself which stands as a guarantor to Billion Dynamic;


• Kenmark’s subsidiary in Labuan, Kenmark (Labuan) Ltd, for US$1.69 million (RM5.51 million) for failing to regularise an overseas project financing facility amounting to US$6.5 million; and


• Kenmark itself for an amount of RM15.91 million for a credit facility of RM15 million.

Lot's of money owed to the bank and the bank is knocking at the door.

On May 28th,

• The company stated that it received on Friday, May 28, 2010 a letter of demand from EON Bank for the sum of RM7.67 million for defaulting on banking facilities.

On May 31st,

• KENMARK INDUSTRIAL CO. (M) BHD independent directors Zainab Abu Bakar and Yeunh Wee Tiong have informed Bursa Securities that the managing director James Hwang and deputy general manager Goh Kim Chon have resigned from the company

Share tumbles big time.... with huge volume too. (Hmm... don't you wonder? )

Yesterday... Kenmark MD says he was unwell, unconscious (ps.. Kenmark shares rallied big time)

• KUALA LUMPUR:KENMARK INDUSTRIAL CO. (M) BHD []'s independent directors had received an email from the managing director that Hwang Ding Kuo @ James Hwang, had been unwell and unconscious, hence uncontactable.
  
  "James Hwang in his letter has stated that he has been unwell and unconscious and was also uncontactable. He has now regained full consciousness but still physically weak," said the company in a statement to Bursa Malaysia on Wednesday, June 2.
  
  Kenmark said Hwang proposed the appointment of Ho Soo Woon, Ahmed Azhar Abdullah, Woon Wai En, Datuk Abd. Gani Yusof to manage the issues that have arisen in his absence. Two are proposed to be Executive Directors.
  
  "The independent directors will convene a meeting tomorrow morning by teleconference with the Taiwanese directors to consider the appointment and make the necessary announcement," it said.

Here's the Business Times version.

• The group's boss and major shareholder, Hwang Ding Kuo@James Hwang, says he will only return to Malaysia once he is healthy
  
  Kenmark Industrial Co (M) Bhd (7030) said its boss and major shareholder, who was missing as the group's fortunes took a rapid turn for the worse, is sick in China.
  
  In a statement sent to Bursa Malaysia through the company's secretary yesterday, Hwang Ding Kuo@James Hwang said he was taken ill in China on May 24 and was in a delirious state.
  
  "It was only yesterday (Tuesday) I regained full consciousness but am still weak to travel," he said. He did not identify the nature of the sickness nor did he say when he expects to be well.
  
  Hwang will only return to Malaysia once he is healthy.
  Hwang also said he could not be reached by telephone as all calls had been barred by family members.
  
  However, he said a friendly party has bought a substantial stake in the company and new appointment of directors will be made, including two executive directors to manage the current situation.
  
  Hwang did not give details of the deal.
  
  "I wish to state I am still the managing director of Kenmark and will work together with the new shareholder to try and resolve all outstanding issues caused by my sudden absence," Hwang said.
  
  He also did not state the current whereabouts of two other Taiwanese executive directors Chang Chin-Chuan and Chen Wen-Ling who were also said to be missing.
  
  The new directors to be appointed are Ho Soo Woon, Ahmed Azhar Abdullah, Woon Wai En and Abdul Gani Yusof.
  
  They will also review the company's situation in Vietnam.
  
  "I have spoken to Ho to have him discuss with Bursa Securities for a time extension to announce the fourth quarter results and appoint a special auditor," Hwang said.
  
  Over on the stock market, Kenmark's shares were suspended at 4.43pm yesterday and they will remain so indefinitely, according to Bursa Malaysia.
  
  Before the suspension, its shares were among the most active when it almost doubled to 11.5 sen from 6 sen previously.
  
  Since news broke that Hwang went missing, Kenmark lost as much as RM140 million in stock market value in a matter of days while more than 400 of its workers were uncertain about their future.
  
  Even the Securities Commission will investigate the furniture maker, while Bursa Malaysia directed Kenmark to appoint a special auditor to probe its finances.
  
  Kenmark's shocking story started on May 31 when its shares tumbled 68 per cent, leading to a query from Bursa Malaysia. The group said that its two independent directors could not contact Hwang while key executives have quit.
  
  It also cannot issue the fourth quarter results for the period to March 31 2010.
  
  The independent directors were told by former executives that all of its operations have stopped while two banks demanded some RM73 million of their money back.
  
  To make matters worse, it immediately became a PN17 company, a label of financially troubled firms on Bursa Malaysia.
  
  Meanwhile, Kenmark's external company secretary Leong Oi Wah when contacted confirmed the independent directors will still meet with the company's receiver, PricewaterhouseCoopers, as planned on Friday to determine the actual debt of the company.
  
  Read more: Kenmark: MD in China, is sick http://www.btimes.com.my/Current_News/BTIMES/articles/kenmak4-2/Article/#ixzz0pkAwUlJ6

Ok.. I will be fair and attempt to decipher the Business Times article...

1. First bankers demanded some 72 million back from Kenmark.

2. Then Kenmark said the MD resigned.

3. Kenmark MD said he's sick. Was unconscious. Only woke up yesterday.

4. MD does NOT state what sickness that caused him to be unconscious.

5. But... you cannot call him. Apparently family members barred all calls.

6. Two executive directors from Taiwan has gone missing. MD did not state where they were.

7. Apparently... a friendly party has bought a huge stake in the company. (hmm.. no changes of shareholders announcement made on Bursa. hmmm...... stock rallied yesterday (many did not know why))

8. Company has NOT released its earnings.

9. Company is now a PN17 stock and is currently suspended (yeah.. after surging like crazy yesterday!)

10. Pricewaterhouse is contacted to determine the actual debts of the company.

11. MD will only return back to Malaysia when he is healthy. Apparently he's too sick to travel.

How?

Well.. my name is not Susan. :D

Do you buy what's being said?