KUALA LUMPUR: Jerasia Capital Bhd has introduced that three of its wholly owned subsidiaries – Jerasia Fashion Sdn Bhd, Jerasia Apparel Sdn Bhd and Canteran Apparel Sdn Bhd – have utilized for a judicial management order to permit for a restructuring and regularisation of their funds.
In a bourse assertion, the group stated the judicial management orders, if granted, would get the involvement of an impartial skilled to facilitate the restructuring of the group with the help of the board of administrators and management.
The group added that the orders would additionally “rehabilitate the businesses by a mix of a number of approaches to regularise the monetary situation of Jerasia Group, maximise the return to collectors and worth to the shareholders of Jerasia Group, and restructure the money owed owed to their collectors”.
According to Jerasia Capital, the retail and manufacturing segments have been working below hostile monetary and operational circumstances for the reason that Covid-19 pandemic.
It stated the totally different phases of the motion management order within the nation have resulted within the closure of its numerous retail shops and manufacturing services.
Coupled with plummeting gross sales owing to the sharp decline in international commerce and shopper demand, the group was unable to generate adequate income to fulfill its reimbursement necessities.
“Be that as it might, the BOD of JCB considers that there’s a cheap likelihood of rehabilitating the Companies or of preserving all or a part of their companies as going considerations and/or that the pursuits of the Companies’ collectors could be higher served than by resorting to a winding up, if the JM Order Applications are allowed,” stated Jerasia Capital.
Trading in Jerasia Capital’s shares was halted between 9.08am and 10.08am on Monday in gentle of the announcement.
As at 12.30pm, the counter was up 0.5 sen to 14.29% to 4 sen a share on the again of three.15 million items traded.