Kenmark: MD and Deputy GM 'resigns', Share Plummets Big Time!!!

On the Edge Financial Daily: Kenmark independent directors say MD, deputy GM resigned

• Kenmark independent directors say MD, deputy GM resigned
  Written by Joseph Chin
  Monday, 31 May 2010 10:29
  
  KUALA LUMPUR: 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.
  
  The independent directors said on Monday, May 31 that they had on Saturday gone to the company’s premises at Port Klang and noted that the premises have been sealed.
  
  "The independent directors then met up with the former executives to seek clarification and was duly notified that the MD has not been contactable since Tuesday, May 25. On Wednesday, certain suppliers had gone into the Company’s premises to recover their stock and raw material," the independent directors said.
  
  The former executives also informed that EON Bank Bhd has been duly notified of the situation and EON Bank has on Thursday, May 27, placed their security guard at the premises and EON Bank would be appointing a receiver over the assets of the company.
  
  The independent directors said they will make an appointment to meet with Bursa Securities on Monday on the matter as they were willing to co-operate with all parties concerned.

MD and deputy GM resigned, premises sealed.

Gone case?

First thing, the huge selloff on last Thursday.

Then, I noted on Bursa website is that the company has NOT made its quarterly earnings this month.

Then I noted, lots of share buybacks.

Then I notice the MD has been disposing his shares fairly often but the disposals weren't too big in nature. This was his last reported disposal: here

Its last reported earnings in Feb 2010: Quarterly rpt on consolidated results for the financial period ended 31/12/2009

Not looking good despite the apparent good profit shown... the typical warning signs were all there!!!

Massive spike in receivables! Trade receivables at 248.6 million???? So much? Why? How come? Any hanky panky?

Cash balance of only 2.21 million? What's it doing all the share buybacks?

Now such cash balance is not enough because look at the financial costs...

According to its quarterly earnings notes, Kenmark paid some 4.633 million in 'financial costs'.

And naturally, we have the HIGH borrowings.

How?

Kenmark is now suspended at 0.105 sen!!! Down a whopping 68.2%!!!!

===================

Old postings of Kenmark: here