Stark Corporation Public Company Limited (SET: STARK) stated that the reviewed financial statements for the year ended 2022 is expected to complete within June 16, 2023, as requested by the Stock Exchange of Thailand. However, the extended-scope special audit per requested by SEC is expected to complete within July.
The company has provided cooperation to, and worked closely with, the company’s auditor, i.e., PricewaterhouseCoopers ABAS Ltd (PwC), to jointly analyse the company’s financial and accounting information for audit and preparation of the financial statements for the year 2022 (2022 Financial Statements) in accordance with the action plan given to the SEC and the SET. The actions have achieved significant progress. The auditor expects that the 2022 audited financial statements can be issued by June 16, 2023.
On 7 June 2023, the meeting of the company’s Audit Committee resolved to approve the appointment of PwC as auditor to conduct the extended-scope special audit as instructed by the SEC. Since PwC has conducted a special audit and has familiar knowledge and understanding about the company’s information and is able to conduct the extended-scope special audit as instructed by the SEC promptly. Thus, PwC is duly qualified to be appointed an auditor for the extended-scope special audit.
Nonetheless, the auditor expects to conclude the result of the extended-scope special audit within July 2023 and the company will periodically report the SET on the progress, as well as issues and obstructions of the process.
Since the bondholders’ meetings of the bonds series nos. STARK239A and STARK249A resolved not to waive an event of default and exercise the right to declare that all principal and interest of the bonds become due immediately, the outstanding principal amount of THB 2,241,000,000 and interest under such bonds then became due immediately.
Such default causes a cross default event to occur under the three other bonds and finance documents. In particular, it results in an event of default under (a) the three other bond series nos. STARK245A STARK255A and STARK242A having the outstanding principal amount of THB 6,957,400,000 and (b) the finance documents. Therefore, the company needs to negotiate with other creditors which may also accelerate their debts as the bondholders.
