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We refer to your letter dated 21 June 2000.
In accordance with Section 58 of the Exchange's Main Board Listing Requirements, we enclosed herewith the following detailed explanation:-
The Company and the Group have been incurring operational losses and were in capital deficiency position since 1996. As at 31st December 1999, total bank borrowings stands at RM47.1 million. The ability of the Company and the Group to continue as a going concern is uncertain.
For this reason, Pengurusan Danaharta Nasional Berhad ("Danaharta") has appointed Special Administrators to assume control of the assets and affairs of Sin Heng Chan (Malaya) Berhad - Special Administrators Appointed. The Company is presently in the process of developing a workout proposal.
These factors raise substantial doubts as to the ability of the Company and the Group to continue as a going concern and is dependent upon the successful outcome of the said workout proposal.
