BAI Co. (Mtius) Ltd did not communicate with the prospective buyer of its shares in Global Capital by the deadline of September 10, resulting in the lapse of its purchase agreement, according to a company announcement.

This effectively means that the offer by the buyer – EIP – cannot proceed at this stage.

EIP has indicated it is still intent on acquiring shareholding in the company as well as taking up a €15 million rights issue needed to recapitalise the group.

EIP agreed to buy the 48.45 per cent of the ordinary shares held by BAI Co. (Mtius) Ltd, which is now in the hands of administrators BDO, appointed by the Mauritius Financial Services Commission after a scandal emerged last April about BAI’s banking operation.

EIP, a Malta-registered entity, is owned by two Italians with backgrounds in the investment management sector.

This effectively means the offer by the buyer – EIP – cannot proceed at this stage

Auditor Deloitte noted recently that the repayment of the group’s bond due in June 2016 was “fully dependent on funding from external investor” and said that “the existence of a material uncertainty” could yet cast significant doubt about the company’s ability to continue as a going concern.

However, in a company announcement yesterday, the directors said that, given the developments, including “the other fi-nancing options potentially available to the company”, it is still appropriate to consider the group as a ‘going concern’ – noting that future events cannot be predicted.

A new CEO, appointed in June 2014, launched a re-structuring plan at the Global Capital Group.

It registered a profit before taxation of €1.2 million for the first six months of 2015, compared to a loss of €966,897 for the same period last year.