Why NGX placed Resort Savings & Loans, 2 others on restructuring status

Why NGX placed Resort Savings & Loans, 2 others on restructuring status

The Nigerian Exchange Group (NGX Exchange) has placed Resort Savings and Loans (Mortgage firm), Union Homes, and Aso Savings & Loans on restructuring status.

This was disclosed by the Exchange in its X-Compliance Report , released last Friday and seen by Nairametrics. Why they were asked to restructure

The Exchange approved their restructuring after it suspended trading in the shares of the three companies for failing to file their financials with the bourse between 2017 and 2020.

The companies were suspended pursuant to the provisions of Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules).

The Rule provides, “If an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will send to the Issuer a “Second Filing Deficiency Notification” within two (2) business days after the end of the Cure Period; suspend trading in the Issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the Market within twenty- four (24) hours of the suspension.”

READ: Why these 7 companies may be delisted from the NSE soon What it means for the trio

The restructuring status means that the companies need to boost their liquidity after failing to file their financial reports with the Exchange. For instance, Union Homes Savings & Loans, and Aso Savings & Loans have not sent their 2014 – 2019 audited results to the exchange for obvious reasons.

Findings by Nairametrics have revealed that the companies are currently going through hard times related to financial misappropriation.

READ: Access Bank, GTB pull the NSE Banking Index into a loss Resort Savings and Loans

A few years back, the Chairman of Resort Savings and Loans, Senator Sunday Fajinmi, had reportedly invited the Economic and Financial Crimes Commission (EFCC) to investigate the former management of the firm over allegations of fraud.

Also, some depositors of the company alleged that the new management, which promised to refund their deposits within two months after take-over, had abandoned them, adding that the new management equally lacked good corporate governance. READ: NSE-30 companies lose N1.13 trillion in market capitalisation year-to-date Aso Savings & Loans Nairametrics found that the results of the company used to be frequently posted until 2012. Between 2013 and 2016, the financials are missing even on the site of the firm. In 2016 and 2017, Aso Savings posted a summary of its […]

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