Stark Corporation (STARK) has reassured the Stock Exchange of Thailand (SET) and its shareholders management is ready to take any necessary action to protect the interests of shareholders in managing risks associated with the company's potentially improper transactions.
Vonnarat Tangkaravakoon, the company's major shareholder and director, convened a meeting to provide information to shareholders, investors and concerned parties ahead of the resumption of trading of STARK shares on the SET on Thursday.
The SET removed the suspension sign on shares of the wire and cable manufacturer for the first time since March 1, allowing trading of the company's securities for at least one month.
Stark has failed to submit its 2022 financial statement and its 2023 first-quarter financial results.
The company was allowed to issue a financial review for disclosure to regulators and the public by June 16. If the update cannot be submitted in time, the company will notify the SET and the Securities and Exchange Commission (SEC) as soon as possible, Mr Vonnarat said in a filing to the SET on Wednesday.
"The company is in the process of examining several financial transactions questioned by the special auditor and experts, and we will notify the SEC when additional information is obtained and will take further legal action if needed," he said.
The company has changed the working team and the internal control system to make them more efficient and prevent further problems, said Mr Vonnarat.
Stark paid interest of 67.1 million baht to bondholders last month. The bonds were sold as part of the proceeds to pay off various debts of the parent company and its subsidiaries, as well as being used as working capital for business expansion and investment.
The company is in the process of appointing an auditor from one of the Big Four auditing firms to conduct a special audit of the extended scope of the financial results, as specified by the SEC, he said.
"The company will liaise with the auditor to conduct its special audit promptly and transparently, by providing information, coordinating and taking any relevant actions to facilitate to the process," said the filing.
Stark plans to gather evidence and information obtained from the special audit process and notify the SEC of progress by June 15.
"With respect to the risk associated with the potentially improper transactions, the company is ready to take any necessary action or appropriate procedure under the relevant laws to protect the interests of the company and shareholders," said the filing.
