Utusan has fallen into the ignominious PN17 category. And all over a paltry sum of RM1.2 million which they could not pay their banks. It now has 12 months to come up with a regularisation plan (how it can become solvent again) to avoid delisting.
Utusan has been on a loss-making streak for awhile, chalking up RM71 million in accumulated losses. This UMNO-associated company was focused on its controlling shareholder’s agenda, losing readership and court cases along the way. It had been relying on the Government’s assistance which all came to an abrupt end on 9th May this year.
This then begs the question, didn’t the directors and management of Utusan also have a fiduciary duty to Utusan’s other shareholders who presumably bought Utusan’s shares in the hopes of getting a return? Should the focus have been more on profitability? If not, it shouldn’t have been listed in the first place.
It will be tough road ahead for Utusan based on preliminary indications. If its shareholders and business operations cannot even cough up RM1.2 million to avoid PN17, the future does not look good. Retrenchment is a high possibility.