UniFiber

UniFiber: lifts trading halt this morning. Says its subsidiary, Poh Lian Construction, has applied for Judicial Management (JM). The unit was responsible for Material Losses at UniFiber in its FY12 results (pretax loss of US$76m), and has been experiencing significant financial and operational difficulties due to challenging conditions in the local construction industry. The JM hearing has been fixed for 5 Apr ’13. This is a stumbling stone with respect to UniFiber’s proposed reverse takeover transaction, via a $2.24b acquisition of 97% of PT Golden Energy Mines. While PT GEMS intends to negotiate revised terms with UniFiber, the latter has to ensure it is not “adversely affected” by the JM. As part of the terms, the JM is to be completed by 7 Sep ’13, or other such date as both parties may agree. UniFiber has been loss making for the past 5 years. Shareholders who were likely looking forward to a successful RTO which would have provided a catalyst for positive change, may now be disappointed at the delay.