Golden Agri, AFP ask for suspension of share trading

Golden Agri, AFP ask for suspension of share trading

SINGAPORE (Dow Jones): Asia Food & Properties Ltd. and its unit, Golden Agri-Resources Ltd., requested suspension of trading in their shares on Monday.

The Indonesia-based and Singapore-listed companies said the suspension will allow more time for dissemination of information relating to their financial statements for 2000.

The suspension of trading follows the release early Monday of auditors' reports on financial statements of Asia Food and Golden Agri-Resources.

Asia Food is an investment holding company with businesses in agriculture, food and property, while Golden Agri is a plantation company.

In the reports, the auditors said they couldn't form an opinion on whether the companies can continue as going concerns.

In response, Asia Food and Golden Agri said they remain positive about growth prospects, given the recovery in palm oil prices.

In identically worded statements, the two companies said: "As one of the world's largest vertically integrated palm oil plantation companies and low-cost producer, the group is strongly positioned to take advantage of future increases in the price of crude palm oil."

The auditors were Arthur Andersen for Golden Agri and Deloitte & Touche for Asia Food.

In their audits, both said certain units within the group have defaulted on payments and breached certain financial covenants.

As a result of these breaches, lenders have the right to recall outstanding loans immediately. This long-term debt has been reclassified as current liability.

With this reclassification, Golden Agri's current liabilities exceed its current assets by US$347.1 million.

As for Asia Food, its current liabilities exceed its current assets by S$699.9 million.

Shares of Asia Food closed unchanged at 8.0 Singapore cents on Friday, while Golden Agri closed 1.0 cent, or 7.4 percent, higher at 14.5 cents.