Internal squabbling leads to DQ Entertainment delisting

Animation, gaming and live action entertainment company DQ Entertainment was set to be cancelled from trading on Thursday, with the firm being unable to appoint a replacement nominated adviser.

The AIM-traded group notified the market on 4 February that it had approached a number of prospective nomads to replace its previous adviser, but given issues within DQE, none of the prospective nomads consented to act for it.

It said the issues involved an alleged change of control, and the possible event of default under the terms of bonds issued by some of its subsidiaries on 9 December 2014.

The nomads also had concern over the requisition of a general meeting to propose resolutions to appoint Anil Chintapalli and Suresh Chitturi as directors, and immediately remove Sundar Srinivasa Raghavan and Rashida Adenwala as directors.

“The directors of the company greatly regret both the initial suspension during 23 February 2016, and the delisting that has now occured as a direct result of the event,” the board said in a statement.

“[We] are fully committed to compliance requirements and are working towards creating an alternative platform for facilitating trading in the company shares,” it added.

DQ Entertainment intended to continue operating as an unlisted company for the time being.