Nuplex Industries Ltd., a New Zealand resin manufacturer, is headed for its biggest stock slide in a month in Wellington trading after regulators alleged it breached disclosure rules.
The Securities Commission is filing proceedings against the Auckland-based company and six current or former directors, it said in a statement late yesterday. The stock fell 2 percent to NZ$3.40 at 1:20 p.m. local time.
Nuplex failed to reveal that it breached the terms of a banking covenant between Dec. 22, 2008, and Feb. 19, 2009, the Securities Commission said. This is the first case brought by the commission over failure to make continuous disclosure of material information, it said.
Nuplex shares fell to a 14-year low on Feb. 19, 2009, when it said it was in talks with bankers. It made the disclosure after inquiries from the stock exchange.
Nuplex takes its continuous disclosure obligations seriously and remains of the view that it has properly complied with them at all times, the company said in a statement. Nuplex and its directors will defend themselves vigorously, it said.
The company sought a loosening of the debt ratios of its banking covenants in December 2008 as earnings slumped amid the global financial crisis. The banks agreed and the board decided there was nothing material to report to the market.
To contact the reporter on this story: Tracy Withers in Wellington at firstname.lastname@example.org.