On 15 November, the Stock Exchange of Thailand (SET) posted the SP sign or Suspension on the trading of JKN Global PCL (SET: JKN) stock. This is due to its auditor not expressing an audit opinion or a conclusion on its 3Q23 financials. This morning, SET also disclosed the JKN clarification that was filed yesterday, citing three reasons of the lack of financial liquidity, debt default and assessment of impairment.
JKN wrote, due to the Group’s financial liquidity management not being as planned, resulting in JKN’s default on the repayment of the debentures. The resolution of the Debenture Holders’ Meeting is considered to have caused a breach of the debenture agreements on other 6 series of debentures cross default according to the rights conditions.
Presently, JKN is under negotiation to extend the debt repayment and a proposal of conditions requisite to forestall the immediate debenture repayment (Call Default) and it is in the process of finding new sources of funds, business, restructuring and financial restructuring.
In addition, JKN has to consider classifying debts such as debentures, convertible debentures, and loan debt from financial institutions as all current liabilities, which are higher than current assets for a total amount of THB 4,285.52 million.
On 9 November 2023, Thai Bankruptcy Court issued an order to accept the petition for business rehabilitation of JKN and set the hearing date for the petition for business rehabilitation on January 29, 2024.
JKN had investments in the subsidiaries of THB 2,460.31 million, trademarks of THB 1,333.31 million and intangible assets – program rights of THB 6,277.65 million. They were under consideration for indications that such assets might be impaired and the goodwill of THB 717.96 million had to be tested and assessed for impairment yearly. All assets are in the process of being assessed by an independent.
