Sen Yue first announced the interim review on April 29, when it said that its wholly-owned subsidiary, SMC Industrial, had received a letter of demand by a bank for the repayment of outstanding past due payments. The letter of demand was later withdrawn upon full repayment on April 28.
The halt, called on April 28, was meant to provide time for SMC to make full repayment to the bank and for the board to review the subsidiary's financial position. One reason for the proposed board restructuring is that the company's net profit after tax"has not been up to expectations in the last three years", and these low earnings have contributed partially to the"poor performance" of Sen Yue's share price, Mr Koh said in the notice. He believes that bringing in new board members to set and develop strategies to grow and expand the company, will help maximise shareholder value.
However, executive directors Neo Gim Kiong and Liew Nyok Wah said they disagreed with Mr Koh on issues relating to the management and operation of Sen Yue's subsidiaries.