PN17 Companies - Heavy Debted, Negative Cash Listed Companies in Stock Markets

While there are more than a thousand companies in Bursa Malaysia are listed, not all of them are in a financially healthy. Although at the time of listing must be listed on these companies, the Listing Requirements of Bursa Malaysia to be fair, given time, the company's financial situation and business direction for change for the better or for worse.

There are many reasons for these changes, such as a change in management, risk profile, management team, experience, preparedness, financial --Appetite, and so on transmission

In this article I will talk about publicly traded companies that are classified as PN17. PN17 stands for Practice Note 17/2005 and is issued by Bursa Malaysia, in terms of companies that are in financial difficulties. Companies that need the definition of PN17 to its proposal to the approving authority for the restructuring and revitalization of the company to deliver the recording to maintain status.

Before 2005, publicly traded companies that are in this PN17Condition are classified under PN4.

Are criteria for a listed company as PN17 companies classified as follows: --
Shareholders' funds is equal to or less than 25% of the total issued and paid-up capital of the listed company or
Recipients and / or directors have been appointed to take control over working at least 50% of the total assets of the company on a consolidated basis, or
Liquidation of a subsidiary or associated company represents at least 50% of total assets,the company on a consolidated basis, or
The auditors have adverse or disclaimer opinion on the last words of the listed company audited accounts;
Known for late payment, the listed company is their inability to give a declaration of solvency Practice provide Grade 1 / 2001 or PN1, or
The listed company is suspended or not all or a large part of their activities.
There are many reasons and circumstances for a publicly traded company under the classification of autumnPN17. For example, there are some cases classified as PN17 due to external factors such as currency fluctuations and economic forecasts.

Since mid 2008, we have already begun to do series of economic problems, but many are not expected to be the situation and the impact that serious. Examples of some foreign giants, which are strongly affected by the "sudden" adverse changes in global economic conditions, are General Motors and Citigroup.

For other companies such as AIG, itsProblems probably arise because of the high risk-taking and economic miscalculations.