Sekar Bumi delisted from stock exchange

JAKARTA (JP): The Jakarta Stock Exchange (JSX) removed Surabaya-based PT Sekar Bumi from the trading board on Wednesday for not meeting the listing requirements.

"Sekar Bumi shares are no longer tradable on the JSX since they were delisted, effective on Sept. 15," JSX president Mas Achmad Daniri said.

Sekar Bumi, which operates a shrimp processing plant and cold storage facilities in Surabaya, was one of 85 companies included on the exchange's watch list for possible delisting.

Companies included on the list are those which are in danger of no longer qualifying to be listed on the exchange due to a decline in their business performances.

Daniri said executives of the 85 companies were asked to come to the exchange and explain their plans for improving the performances of their companies.

He said Sekar Bumi was delisted because its business plan was not capable of stopping the company's slide, adding that the other 84 companies were given between six months and one year to improve their financial performances.

Daniri said Sekar Bumi's unresolved financial burdens were caused mainly by uncollected receivables from its affiliated companies.

"The uncollected debts put significant pressure on the company's operating cash flow. And the debt restructuring talks the company was involved in did not look positive," he said.

With the delisting of Sekar Bumi, there are now 274 companies listed on the JSX, compared to 288 in December of last year.

The JSX has removed 19 companies, including Sekar Bumi, from its trading board since January. The delisted companies were mostly banks closed by the government in November and March of this year.

Five companies have been added to the exchange during this period. (udi)