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I think I have a rough idea of their plan to get out of PN17 now
Obviously step 1 is to submit the circular to Bursa which they did on August 1 and it might take up 4-8 weeks for Bursa to approve the circular. So it will be anywhere from early September to end of September for the approval to come in assuming Bursa doesn't request anything that might prompt a delay. Capital A will likely call for an EGM in 21 days right after they have received approval for the circular from Bursa, so the earliest possible date is somewhere between October to November, but I would say a more realistic timeline to complete would be November to December hence why Capital A have requested for an extension till end of December.
After the EGM is conducted, Capital A can dispose their aviation arm to AAX and Capital A's shareholder equity will finally be positive which enables them to get out of PN17. My gut feeling tells me it will be similar to AAX where they apply for a waiver to submit a regularisation plan to Bursa and Bursa compromises by imposing conditions (e.g posting one profitable quarter or two profitable quarters consecutively) in order for Capital A to get out of PN17
if you dispose the aviation business+ debts+liabilities to aax, (effectively putting aax back to PN17 )will the aax shareholders agree to it? will bursa SC agree to it?
yup...alot of twist and turn yet to come..commentors on this forum make it looks like exiting pn17 is at the horizon...it is definitely not as simple as that...not without further money raising exercise( aax are too broke to buy capA aviation business) further dilution..if you really really wanted to buy u can buy at then...there is no rush really.
Both AAX and CA is own by Tony, if he decides that AAX to agree the disposal, there is nothing to reject. Bursa would approve it since both company agree to the transaction regardless whether who benefits the most out of it.
fact1: tony and crony only owns bout 40% of aax shares not majority
fact2: bursa will intervenes if the deal significantly benefits one party and significantly puts another at overwhelming disadvantagous position. Does it comply to the regulations and laws?
Everything is not set in stone yet..bursa will also have to see after taking over capital A business , can aax operates and survives as normal? from latest qr...nope and it is a big NOPE.
Capital A the first one to do this or not is immaterial as all of it have to be subjected and scrutinized in accordance to the regulations and law to the highest degree by bursa.
I did not claim that bursa will surely reject the proposal but claiming that it will "surely be approved" is very far-fetched.
@Jedd Law and regulations does not affect CA, remember how they wrote off 99.5% of AAX during MCO and the high court approved? This disposal approval is so small compared to that write off. Tony has the cards!
completely different issue all together, the debtors agreed to the write off, and it does not bring AAX shareholder to a disadvantagous position, it actually improves AAX overall financial standings. no reason for bursa to reject..and NO listed company are not subject to regulations and laws...comeone man, i know u like CapA but saying regulation and laws does not apply to a listed company...is abit u know...doesnt make sense...
