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ya throw untill flat face
Really cannot understand. Let go yesterday at 0.27. Saw declining volume for past few days. Today rose to 0.295 at a high, and the volume came right back. However, better safe than sorry. Money in pocket. Kiasu syndrome.
Good luck to all those still vested. Hope you make $$$.
I am contented with what I have pocketed.
The stock market is indeed a bizarre place!...
Actually i don't quite understand why many people buy this counter and the price is going up. Equation is formerly called Heshe and it was making a loss for many many years. And just 1 to2 years back, it change its name to Equation and buy lousy company like Centrillion (Citiraya). Equation could not even save itself and yet it buy another losing firm... Many customers of Centillion is going to sue Centillion. See below.
Citiraya rescue plan set to fail
By Mano Sabnani, TODAY | Posted: 23 September 2005 1209 hrs
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 A worker dismantles disposed computers at the secregation area of Citiraya Industries |
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Citiraya Industries, the electronic waste recycler, has hit the headlines once again. What is one to make of the latest developments?
The company has been in the news since January, when the Commercial Affairs Department (CAD) moved in to investigate. Since then, the Corrupt Practices Investigation Bureau (CPIB) has also become involved and a number of people have been charged with corruption and misappropriation of company funds.
Meanwhile, Citiraya has its own probe going on, with corporate restructuring expert Nicky Tan as an independent investigator and financial adviser.
A key rescue effort by Venture One, which had the involvement of well-respected entrepreneur Koh Boon Hwee, pulled out in May this year, saying the due diligence exercise had not worked out well.
Citiraya then obtained a court order to hold back any winding-up moves by creditors, saying 11 investors were interested in equity stakes in the company while four investors wanted to buy some of its assets.
Nothing concrete emerged in the following months. Meanwhile, Citiraya proposed a scheme of arrangement to restructure and reduce its debts. That scheme had to be called off when certain creditors rejected it and DBS Bank moved to wind up the company, which owes it about $38.6 million.
Early this month, Citiraya proposed to file for judicial management, saying it would be better for all parties than a winding-up process. It maintained that its business of electronic waste recycling was viable and said there were three credible investors interested in buying stakes.
Nothing substantive has emerged from these European and Malaysian investors.
Instead, we heard that chip giant Advanced Micro Devices (AMD) had filed a writ of summons late last month to claim up to US$250 million ($420 million) from Citiraya for irregularities in the handling of its materials in the past. This is a huge sum.
The latest rescue plan emerged a few days before the court hearing of Citiraya's judicial management proposal today.
Chip Lian, the investment vehicle of tycoon Oei Hong Leong, and publicly-listed Heshe Holdings are proposing to inject $10 million each into Citiraya for working capital. They will have the option of investing a further $10 million each within one year of the initial investment.
The interesting thing is that the two investors will receive 1.9 billion new shares in exchange for their combined $20 million investment.
This means the shares are valued at just over one cent per share. That is a far cry from Citiraya's last traded price of $1.08 per share before trading was suspended in January this year.
The two investors have the option to buy more shares in Citiraya at just over one cent per share. The point here is that shareholders of Citiraya have to write down their investment to this level, as that is the price investors are now prepared to pay for Citiraya shares.
Citiraya will become a penny stock, if trading in its shares ever resumes on the Singapore Exchange.
Will this takeover bid succeed, considering that various schemes so far this year to put Citiraya on a more stable footing have failed?
The short answer is that the latest scheme is set to fail as well. There are too many negative factors working against it ? too many unknowns.
The creditors want their money back but the new money being put in by the investors will be needed for working capital.
Secured creditor UOB yesterday filed an application to seize two of Citiraya's factories, and intends to oppose the company's proposal for judicial management.
Other creditors like DBS Bank may also not support the rescue scheme, if there is no clear and acceptable time-table for repaying Citiraya's loans in full.
The CAD and CPIB investigations are still ongoing and once they are concluded, there could be further negative impact on the company and its employees. More clients and employees could desert Citiraya.
The AMD writ of summons against Citiraya is also a huge cloud hanging over the company. Other clients who were shortchanged, like Seagate, 3M and ST Micro, may also sue Citiraya. Claims against Citiraya as well as loans outstanding are estimated to be well in excess of $400 million, versus the $20-million injection of new funds proposed by Chip Lian and Heshe.
Finally, the Chip Lian/Heshe deal seems a rushed one ? due diligence has not been carried out. Heshe has claimed that it has the money to save Citiraya but Heshe itself does not have a track record to boast about, having been itself rescued not too long ago.
The proposed takeover could unravel as quickly as it was put together, if more dark clouds emerge over Citiraya. - TODAY/sh
Just be caution when trading this one or Centrillion.. Heart attack stock..