The share price of JKN Global Group Public Company Limited (SET: JKN) hit the limit down on Thursday after the company announced a rehabilitation plan.
JKN dropped as much as 30% right after the opening bell on Thursday as investors panicked on the sudden announcement from the company, which stated that it has filed a petition for business rehabilitation and nominated a planner to the Central Bankruptcy Court.
This was the first negative session for JKN after a 7-day consecutive rise that saw its price rise 21%.
The company stated that the Board of Directors approved the resolution on November 7 and the petition for business rehabilitation was filed on November 8, 2023.
JKN, as a debtor, proposed JKN Global Group Public Company Limited as a planner. The preliminary business rehabilitation plan guideline includes:
1) Business restructuring and financial restructuring to be in line with the current financial assumptions and economic conditions and solving working capital problems of the business to resolve the financial liquidity of the company and restructure the internal organization.
2) Extending the period for the repayment of debt and waiving interest rate in order that the company can generate income from operation to repay all of its creditors and continue to operate its business.
3) Receiving financial support from new investors or financial institution as a source of funds to utilize as working capital of the company.
4) Providing guideline for the sale of worthless or non-productive asset in order to repay the creditors with the income from such sale.
5) Preparing the plan and strategy to manage liquidity of the company, improving internal business organization and increasing business’s efficiency.
JKN stated that the filing for the rehabilitation petition will effectively solve the company’s liquidity problem under legal mechanism and provide fair protection to all stakeholders. In addition, the company can continue its operation while being under the rehabilitation plan which is a sustainable solution to the problem and to create profits in the future.
