JEL

JEL: Could see some negative sentiments after a proposed multi-million dollar investment in the consumer electronics group was called off. JEL Corp failed to get SGX to grant it more time to submit its proposal for removal from the exchange's watch-list - a condition for the investment from Serial System and Seah Thiam Hock, president of Tsing Yi Enterprises.

JEL said it would be exploring other options to repay its creditors. Recall that in March, Serial System and Mr Seah had agreed to subscribe for new shares in JEL, investing up to $10m in a mixture of cash and new Serial System shares. JEL Corp would have used the net proceeds from the subscription to repay debts, while Serial System also thought the acquisition would be a new growth engine.

Ernst & Young noted that borrowings stood at $12.8m and grp is not able to make full repayment, without adversely affecting working capital required for on-going operations and successful implementation of the scheme of arrangement with the two investors was necessary to generate sufficient cash flows from its operations