Why did Utusan Melayu not appeal its delisting status?

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Utusan Melayu Will Not Appeal Delisting Due to Financial Constraints and Inability to Meet Bursa Requirements

Utusan Melayu (Malaysia) Bhd has decided not to appeal its delisting from the local stock exchange, a move that will take effect on August 30. This decision stems from the company's inability to meet Bursa Malaysia's requirements for uplifting its Practice Note 17 (PN17) status, primarily due to ongoing financial distress, substantial liabilities, and a lack of potential investors. Trading of its shares was suspended on August 29, with the last traded price recorded at 5.5 sen.
Persistent Financial Difficulties Since 2012

The company has been facing significant financial challenges for years, having been in the red since 2012. This prolonged period of financial strain ultimately led to its triggering of the PN17 criteria in August of the previous year. The default was specifically related to principal and profit payments amounting to RM1.18 million owed to Bank Muamalat Malaysia Bhd and Maybank Islamic Bhd.
Inability to Fulfill Bursa Malaysia's Uplifting Criteria

The board of directors indicated that the group could not satisfy Bursa Malaysia's conditions necessary to be removed from the PN17 classification. This inability is directly linked to the losses incurred during the first two quarters of 2019 and persistent cash flow constraints that have hampered its operational stability and recovery efforts.
Failure to Secure a Potential Investor

Compounding its financial woes, Utusan Melayu has been unsuccessful in attracting any potential investors who would be willing to participate in its revival. The primary obstacle to securing such investment is the company's substantial level of liabilities, which makes it a high-risk proposition for any interested parties seeking to inject capital.
Historical Listing and Delisting Timeline

Utusan Melayu, a company with a long history, was first listed on the Kuala Lumpur Stock Exchange in 1994. The deadline for appealing its delisting status was August 27, with the delisting officially scheduled to take effect on August 30. The suspension of its shares preceded the final delisting date.

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Why did Utusan Melayu not appeal its delisting status?

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