Ireka to be suspended on Oct 3, risks delisting after extension bid for regularisation plan rejected

• In a filing on Thursday, the Practice Note 17 (PN17) company said it also faces delisting on Oct 7 unless an appeal is lodged with the bourse regulator before Oct 2.

KUALA LUMPUR (Sept 25): Trading in Ireka Corp Bhd (KL:IREKA) will be suspended from Oct 3, after the construction firm’s appeal for more time to submit its regularisation plan was dismissed by Bursa Securities.

In a filing on Thursday, the Practice Note 17 (PN17) company said it also faces delisting on Oct 7 unless an appeal is lodged with the bourse regulator before Oct 2.

“However, Bursa Securities will proceed to suspend the trading of the company’s securities on Oct 3 even though the decision on the company’s appeal is still pending,” Ireka said.

Ireka was classified as a PN17 company on March 1, 2022, after Bursa rejected its application for an extension of the Covid-19 relief period, as its shareholders’ equity had fallen below 50% of its issued capital.

Notably, the company is the subcontractor for the RM1.07 billion Phase 1B of the Pan Borneo Highway project in Sabah, but the contract was terminated on July 28 following a mutual termination notice from Gammerlite Sdn Bhd due to funding issues and the main contractor’s withdrawal.

Ireka disputes the termination, arguing that some works have been completed and no payment terms had been finalised. The company said it has formally objected and is seeking legal advice to recover costs and secure fair compensation.

Earlier this week, Ireka also disclosed it had defaulted on loan repayments totalling RM1.04 million owed to Hong Leong Bank Bhd (KL:HLBANK) and AmBank (M) Bhd.

Shares of Ireka fell two sen or 14.3% to settle at 12 sen on Thursday, valuing the company at RM27.3 million.

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