RATIONALE FOR THE PROPOSED REGULARISATION PLAN Sample Clauses

RATIONALE FOR THE PROPOSED REGULARISATION PLAN. The Proposed Regularisation Plan serves to regularise the financial condition of the Group and return the Group to profitability. Through the Proposed Regularisation Plan, the Group would be able to reduce its liabilities and at the same time strengthen its cash flow position, which would in turn augur well for the Group’s on-going plan to revitalise its flour milling business operations and to expand its product offerings to include the sales and distribution of other flour products, such as tapioca starch and corn starch through a business collaboration arrangement with Lotus via the BA. The salient terms of the BA are set out in Appendix I of this announcement. The Board believes that the business collaboration arrangement pursuant to the BA and coupled with the anticipated enhanced financial position of the Group following the implementation of the Proposals are expected to improve the financial performance and condition of the KFM Group and eventually lead to the regularisation of KFM’s PN17 status. Further details on the rationale for the Proposals are set out below:-