We refer to the announcement dated 23 September 2015 and the subsequent announcements made pursuant to Paragraph 9.19A of the MMLR in relation to the defaults in payment by Megasteel, a major subsidiary of the Company, in respect of working capital facilities and term loan facilities ("Defaults in Payment") ("Earlier Announcements") and the announcement dated 1 September 2016 in relation to the application for a further extension of time up to 30 November 2016 for the Company to submit Regularisation Plan (“Application”). Unless otherwise stated, the definitions used throughout this announcement shall have the same meanings as defined in the Earlier Announcements.

The Board of Directors of the Company (the “Board”) hereby announce that the status of the Defaults in Payment as at the date of this announcement remains the same.

On 29 September 2016, SJ Securities Sdn Bhd had on behalf of the Board of Directors of the Company announced that Bursa Securities has vide its letter dated 29 September 2016 decided to reject the Company's application for a further extension of time up to 30 November 2016 for the Company to submit the Regularisation Plan (“Decision”) as there is no material development towards the finalisation and submission of the Regularisation Plan to the regulatory authorities.

The Board of Directors of the Company had on 30 September 2016 announced the Decision and that Bursa Securities has informed that the securities of the Company will be de-listed on 12 October 2016 unless an appeal against the de-listing is submitted to Bursa Securities on or before 7 October 2016 (“Appeal”).

The Board of Directors of the Company had today announced that the Company has resolved that the Company will not be submitting the Appeal in view that all material developments in relation to the Regularisation Plan have been disclosed to Bursa Securities for their deliberation in arriving at the Decision.

Pursuant to paragraph 8.04(5) of the Bursa Securities’ Main Market Listing Requirements, the trading in the securities of the Company will be suspended with effect from 10 October 2016 and the securities of the Company will be de-listed on 12 October 2016.

Notwithstanding the delisting, the Company will still continue its operations and business as an unlisted entity.