SINGAPORE (AFX) - Electronics waste recycler Citiraya Industries Ltd said a consortium of investors, which includes Newsmith Capital and Singaporean businessman Koh Boon Hwee, has withdrawn its plans to invest in the company.
"The investor, having completed its due diligence exercise, has decided not to proceed with the investment agreement," Citiraya said late Friday.
On February 28, Citiraya agreed to sell 1.48 bln new shares or about 70 pct of the company's enlarged issued share capital to a consortium of investors led by Koh for 100 mln sgd.
Following the termination of the planned investment, Citiraya said that Koh, Low Check Kian, Hengky Oeni and Lee Kim Bock have resigned as directors of Citiraya.
Oeni and Lee who earlier last month were appointed as executive officer and president respectively, have also resigned from those positions.
Citiraya said that former chief executive officer Richard Jacob will be re-appointed as acting chief executive officer.
"In the meantime, the company is continuing discussions with other potential investors. However, these efforts are detrimentally affected by the continued action by certain creditors to pursue or threaten litigation," Citiraya said.
Citiraya, which remains suspended from trading, is being investigated separately by the police's Commercial Affairs Department and the Corrupt Practices Investigation Bureau.
The company is now in danger of going under if it could not find new investors as creditors have started demanding immediate payment of debts owed by the company.
Last week, DBS Bank has demanded that the company repay debts worth 38.6 mln sgd within 21 days. It also threatened to commence winding up proceedings if Citiraya fails to pay up.
(1 usd = 1.63 sgd)
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"The investor, having completed its due diligence exercise, has decided not to proceed with the investment agreement," Citiraya said late Friday.
On February 28, Citiraya agreed to sell 1.48 bln new shares or about 70 pct of the company's enlarged issued share capital to a consortium of investors led by Koh for 100 mln sgd.
Following the termination of the planned investment, Citiraya said that Koh, Low Check Kian, Hengky Oeni and Lee Kim Bock have resigned as directors of Citiraya.
Oeni and Lee who earlier last month were appointed as executive officer and president respectively, have also resigned from those positions.
Citiraya said that former chief executive officer Richard Jacob will be re-appointed as acting chief executive officer.
"In the meantime, the company is continuing discussions with other potential investors. However, these efforts are detrimentally affected by the continued action by certain creditors to pursue or threaten litigation," Citiraya said.
Citiraya, which remains suspended from trading, is being investigated separately by the police's Commercial Affairs Department and the Corrupt Practices Investigation Bureau.
The company is now in danger of going under if it could not find new investors as creditors have started demanding immediate payment of debts owed by the company.
Last week, DBS Bank has demanded that the company repay debts worth 38.6 mln sgd within 21 days. It also threatened to commence winding up proceedings if Citiraya fails to pay up.
(1 usd = 1.63 sgd)
singapore@xfn.com
gc/jb/rc
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
© 2005 AFX News
