The Indonesia Stock Exchange (IDX) suspended shares of Indonesian aluminium alloy wheel manufacturer Prima Alloy Steel Universal (PRAS) as it looked increasingly likely that the company would soon be declared bankrupt.
The Surabaya District Court last week ordered the shares to be suspended until further notice.
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IDX said in a statement: “Regarding the uncertainty about the company’s business continuity, IDX has temporarily suspended trading in PRAS shares on all markets.”
The company has a plant in Sidoarjo, East Java with capacity for 100,000 alloy wheels per month and has been affected by a sharp drop in demand in Europe which accounts for most output.
PARS aftermarket wheels, ranging between 13 and 24 inches in diameter, are sold under the Panther, Ballistic, Akuza, Sothis, Devino, Incubus and Cratus brands.
Around 95% is exported primarily to Germany, Scandinavia, Japan, Australia and the US.
PRAS is a subsidiary of Singapore based Enmaru International which holds a 54% stake.
The group also sells aftermarket tyres in south east Asia.
