Despite having a meeting with the FSC Board on the suspension of trading with the Corporation, the South Pacific Stock Exchange reveals they are not satisfied with the replies they have received.

Chief Executive, Jinita Prasad said that the reason for the suspension of trading was due to the fact that FSC did not have 12 months working capital, stressing that this was due to the fact that FSC had a Government guarantee for $120 million loan and had already used up $105million of that guarantee with the Corporations equity at the moment standing at -64% (negative sixty four percent).

She added that this is evidence enough that it would not be in the good interest of their investors. She adds that the Stock Exchange has requested more detailed report on what the Corporation will now do to ensure that they meet the minimum listing rules of the SPSE.

She added that taking these figures into account, FSC was basically a loss making company and this was bad news for shareholders and the Stock Exchange needed specifics to ensure the safety of the shareholders and investors.

She said that with the fact that FSC had already used up $105 million in quarantee, no one would want to make loans to FSC.
 
All licensed members of the Exchange will not be able to execute FSC orders until the suspension is lifted.


Story by: Paradise Tabucala