StockMarketWire.com - Struggling animal feed supplier Walcom said it could be forced into liquidation this month after chief executive Francis Chi failed to provide an anticipated loan.

Walcom said that 'regrettably' Chi had been unable to provide the loan of HK$1,230,000.

However, it said Chi had reiterated his intention to provide the loan, without estimating when that may happen.

'The company continues to receive and process customer orders,' Walcom said.

'In addition, the management have sought to defer expenses, where possible, without affecting the normal operations of the company.'

'The company made a partial repayment of a bank loan at the end of March 2020.'

'However, the company is required to make two further bank loan repayments totalling RMB450k by the end of April 2020.'

'The company currently has insufficient funds to make these repayments.'

'In addition and irrespective of these bank loan repayments, in the absence of the director loan now being received in part or in full by 10 April 2020, the company may be unable to continue its operations and would be forced into liquidation with a consequential diminution in value to shareholders.'

At 9:30am: [LON:WALG] Walcom Group Ltd share price was 0p at 0.2p



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