Polaris Capital Plc (POLAR) has clarified to the Stock Exchange of Thailand (SET) that its subsidiaries have halted project developments, as the firm has been ordered into receivership by the Central Bankruptcy Court.
"Because the company has been ordered into receivership, many of its subsidiaries' [projects] have to stop until the Central Bankruptcy Court orders cancellation of the receivership," said Polaris in its statement.
Those projects include The Clover Condominium Phuket, which is under management of Topline Living Co Ltd, and a plot in Phangnga province owned by Polaris and Tangerine Property Co Ltd.
"The Clover has quite a lot of damage and it will cost at least 20 million baht to fix all of it. In addition, the Phuket condominium market is not healthy, [so] many of the projects have closed or been sold," the statement said.
Regarding the progress of using deposits worth 350 million baht to invest in land around Phahon Yothin Road, Polaris has already clarified to the SET and the seller of this land plans to negotiate an extension and waiver for the terms of purchase.
"The company has specified the name of the debtor in the debtor's account filed with the comptroller to show the company's right to deposit a refund if the comptroller [deems] that the deposit remains the legal right of the company to recover or be a part of the land sale proceeds," the statement said.
Polaris, meanwhile, cannot prepare and submit its financial statement for this year's first quarter because of its receivership status. As a result, the shareholders' meeting cannot be held to appoint auditors and establish the audit fee.
"[We] cannot provide the auditor to review and audit the financial statement of the company and its subsidiaries," said Polaris. "But the company will seek to provide the auditor with the ability to prepare and submit a financial statement for the first quarter of 2017 and other financial statements."
In May, Polaris informed the SET that it had filed a business rehabilitation petition, although it was later withdrawn. It was later discovered the firm is under a court-ordered receivership, which significantly affects its shareholders' rights, the SET said.
Polaris shares have been suspended from trading since March 1 for its failure to submit financial statements and provide explanations for its investments.
