27th Mar 2020 18:07
(Alliance News) - Walcom Group Ltd on Friday said Chief Executive Francis Chi has been unable to provide the HKD1.2 million loan - around GBP119,346 - necessary to continue operations.
The Shanghai-based investment company previously said it had secured an agreement with Chi for him to provide a loan to subsidiary Walcom Bio-Chemicals Industrial Ltd. Earlier in March, it said that it may cease to operate if it doesn't receive the loan.
On Friday, Walcom said Chi has reiterated his intention to provide the loan. It added that it continues to receive and process orders, adding that it is seeking to defer expenses. It said it is due to make a partial bank loan repayment of RMB150,000 by the end of March and while it has sufficient funds, it s in talks with its bank to reduce the amount owed.
The company said that in the absence of the loan being received by April 3, it may be unable to continue operations and will be forced into liquidation.
The stock was untraded on Friday in London, last quoted at 0.20 pence each.
By Ife Taiwo; [email protected]
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