The Court of Appeal for Specialised Cases has not decided on an insolvency case filed against SET-listed Group Lease Plc (GL), with the next court hearing scheduled for April 26.
The latest development has shaken investor confidence in GL's business operations, reflected in a nearly 11% plunge in the company's share price yesterday.
J Trust Asia Pte Ltd (JTA) previously submitted an appeal to the Court of Appeal for Specialised Cases after the Central Bankruptcy Court dismissed the company's business rehabilitation petition against GL.
The Court of Appeal for Specialised Cases has ruled that the amount of debt owed by GL and a case of insolvency still need further proof, according to a GL statement.
"The company would like to inform that the Central Bankruptcy Court's order does not have the effect of ceasing the [company's] business operations," chief executive Tatsuya Konoshita said in the statement. "The company can continue its operations and carry out its ordinary course of business, such as entering into transactions with customers or trading partners [and] paying salaries to its employees."
The Stock Exchange of Thailand suspended trading of GL shares yesterday morning at the company's request on the grounds of avoiding unequal information distribution and factual misunderstanding.
GL is a digital finance company specialising in hire purchase for Japanese motorcycle brands.
Earlier, JTA initiated legal proceedings against Group Lease Holdings Pte Ltd (GLH), GL's wholly owned subsidiary registered in Singapore, and other companies, based on the allegation that GLH and other defendants had defrauded JTA of investment in GL worth US$180 million.
JTA filed a business rehabilitation petition against GL in order to take over the company and become a major shareholder by debt-to-equity conversion, according to Mr Konoshita.
JTA's plan failed after the Central Bankruptcy Court dropped the petition.
GL shares closed yesterday on the SET at 6.50 baht, down 80 satang, in trade worth 122.6 million baht.
