KUALA LUMPUR: Jerasia Capital Bhd has announced that three of its wholly owned subsidiaries - Jerasia Fashion Sdn Bhd, Jerasia Apparel Sdn Bhd and Canteran Apparel Sdn Bhd - have applied for a judicial management order to allow for a restructuring and regularisation of their finances.

       In a bourse statement, the group said the judicial management orders, if granted, would get the involvement of an independent professional to facilitate the restructuring of the group with the assistance of the board of directors and management.

       The group added that the orders would also "rehabilitate the companies by a combination of several approaches to regularise the financial condition of Jerasia Group, maximise the return to creditors and value to the shareholders of Jerasia Group, and restructure the debts owed to their creditors".

       According to Jerasia Capital, the retail and manufacturing segments have been operating under adverse financial and operational conditions since the Covid-19 pandemic.

       It said the different phases of the movement control order in the country have resulted in the closure of its various retail stores and manufacturing facilities.

       Coupled with plummeting sales owing to the sharp decline in global trade and consumer demand, the group was unable to generate sufficient revenue to meet its repayment requirements.

       "Be that as it may, the BOD of JCB considers that there is a reasonable probability of rehabilitating the Companies or of preserving all or part of their businesses as going concerns and/or that the interests of the Companies’ creditors would be better served than by resorting to a winding up, if the JM Order Applications are allowed," said Jerasia Capital.

       Trading in Jerasia Capital's shares was halted between 9.08am and 10.08am on Monday in light of the announcement.

       As at 12.30pm, the counter was up 0.5 sen to 14.29% to four sen a share on the back of 3.15 million units traded.