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.