KUALA LUMPUR (Oct 22): Meridian Bhd (KL:MERIDIAN) said trading in its shares will be suspended from Oct 30 after Bursa Malaysia Securities rejected the company's fifth application for more time to submit a regularisation plan.

The financially distressed property developer added that it faces delisting on Nov 3 unless it appeals by Oct 29.

Bursa Securities is of the view that Meridian had not demonstrated any material development towards finalising and submitting the plan to the relevant regulatory authorities, the company said in a filing with the exchange on Thursday.

An appeal submitted within the stipulated timeframe would defer the delisting pending Bursa Securities’ decision. However, the trading suspension would proceed on Oct 30 even if the appeal remained pending. “Any appeal submitted after the appeal timeframe will not be considered by Bursa Securities,” the filing read.

The company has repeatedly asked for more time to submit its regularisation plan. On Sept 11, the company filed for its fifth time, for an extension up to June 25, 2027 to submit the plan.

Meridian was classified as an affected listed issuer in September 2023. It subsequently fell into Practice Note 17 (PN17) status in April 2024 following an audit disclaimer. The disclaimer concerned its financial statements for the 17-month period ended Nov 30, 2023. Its subsequent accounts for the 18 months ended May 31, 2025 also received a disclaimer of opinion.

More recently, external auditor UHY Malaysia PLT issued a disclaimer on Meridian’s financial statements for the year ended May 31, 2026, according to an Oct 1 filing. A disclaimer means the auditor could not obtain sufficient appropriate evidence to form an audit opinion.

For FY2026, Meridian reported a net loss of RM11.18 million, while current liabilities exceeded current assets by RM48.11 million. It also recorded negative operating cash flow of RM1.93 million and had defaulted on repayments of certain bank borrowings.

UHY Malaysia highlighted uncertainties over Meridian’s ability to continue as a going concern, as well as insufficient evidence concerning opening balances and the valuation of investment properties and inventories. Its continued operation depended on factors including the approval and successful implementation of a regularisation plan, funding support and adequate cash flow.

On Thursday, Meridian said that, if delisted, it would continue to exist as an unlisted company and could carry on its business and corporate restructuring. Shareholders would retain their rights under the Companies Act 2016, but their shares would no longer be quoted or traded on Bursa Securities.