Another Shocker From Malaysian Merchant Marine

I just saw the following news article. Malaysian Merchant Marine retrenches all staff

• Malaysian Merchant Marine retrenches all staff
  
  Written by Joseph Chin
  
  Tuesday, 16 March 2010 18:46
  
  KUALA LUMPUR: MALAYSIAN MERCHANT MARINE BHD []'s (MMM) staff have accepted a voluntary separation scheme (VSS) offered by the shipping company.
  
  "Accordingly, following the completion of the VSS on March 15, all of the staff of the company are considered retrenched," MMM said in a statement on Tuesday, March 16.
  
  On March 5, the company said it was considered a Practice Note 17 company after its unit, Erayear Solution Sdn Bhd, was unable to complete the purchase of a chemical tanker under a memorandum of agreement signed with Uniships Pte Ltd on Jan 8, 2010.
  
  MMM had said the vessel was to be deployed to service a new and recurring revenue stream and was crucial for its turnaround strategy. The revenues were estimated at RM700 million and a local financial institution had approved the funding.
  
  It said part of the disbursement terms by the local financial institution included the condition that it required the consent for additional borrowings from the existing lenders of MMM.
  
  However, MMM claimed a downgrading of its Al-Bai’Bithaman Ajil Islamic debt securities from A-id to BB+id had negatively impacted it and it was unable to obtain the loan.
  
  On March 3, the vendor of the vessel issued a issued final notice of termination and forfeiture of the deposits.

WOW!

Just like this and all the staff are retrenched!

ALL?????

Now sad to say, I am not totally shocked at all about this development. This is one stock I had blogged before.

16 Dec 2006, I wrote The MMM story.

Quote:

• remember all the poor corporate governance issue regarding mmm? remember the issue of how one of them boss who Bought unashamed millions of shares in MMM from unexpected minorities in the open market, to sell them at more than 3 times the price a few weeks later to Maruichi (which deal later was cancelled). see how it's so important to avoid companies with poor corporate governance?

Quote:

• I feel sad for the minority shareholders but somehow I feel that these investors could have probably done much better. The warning signs were there since 2004.
  
  The insane earnings projections mentioned in 2004. And more especially with that funky corporate exercise in which that one fellow had bought tons of shares and then tried to pawn it off at more than 3 times the share price within a few weeks to Maruichi back in 2004.
  
  That was one insane funky music being played.
  
  The investor should have had headed for the exit doors right there and then!
  
  Now? Too late to cry over spoilt milk, eh?

Sorry to repeat again...

• see how it's so important to avoid companies with poor corporate governance?