First clear alarm bell of Alam Maritim’s grave condition as a company was the announcement from 30.11.2021 that it triggered PN17 criteria and became a distressed business.  As misfortunes come in pairs, two conditions were triggered: disclaimer of opinion by the auditor of a material uncertainty, and the announcement that shareholders’ equity dropped below 50% of shares capital.  There was another disclaimer from a new auditor the following year too. Shocked shareholders soon also found out that the debts are in default as well, triggering yet another criterion. Clearly the company was in a catastrophic state; however, covid pandemics allowed the management to do NOTHING about this, without the consequences from the Bursa.

A very gloomy future formed for Alam. Bursa Malaysia has a special process for companies in distress when they meet even one crteria below:


1.       Shareholders’ fund is equal to or less than 25% of the total issued and paid-up capital of the listed company.

2.       Receivers or managers were appointed to take control of at least 50% of the total assets employed.

3.       Winding up of a subsidiary or associate company which makes up at least 50% of the total assets employed of the listed company.

4.       Auditors expressed adverse or disclaimer opinion on the listed company’s latest audited accounts.

5.       Default in payment; the listed company must announce its inability to provide a solvency declaration

6.    Company was suspended or ceased all or a major part of its operations