The move comes after Aspen Glove announced that it was unsuccessful in its proposed disposal of its land and factory at the Kulim Hi-Tech Park, Kedah, in April this year.

The land and building were proposed to be sold for a consideration of 200 million Chinese yuan (RM127 million) in December 2022.

In a statement yesterday, the company said the directors and shareholders of Aspen Glove acknowledged that it is unable to pay its debts based on actual and/or contingent liabilities and is “cash flow insolvent”.

This was given Aspen Glove’s unsuccessful attempts to dispose of its interest in the lease land and factory buildings, mounting legal claims and suits, and current financial position.

The statement added the petition to wind up the business is in the best interests of Aspen Glove and its creditors as it ensures an orderly wind-down of the affairs of the company under the control of a court-appointed liquidator.

Aspen Group, founded by Murly Manokharan, established Aspen Glove during the early stages of the Covid-19 pandemic in August 2020 to diversify its business and take advantage of the medical gloves boom.

However, with every boom comes the inevitable bust as numerous companies around Asia jumped onto the glove manufacturing bandwagon, leading to a glut in supply and a huge drop in prices.

In June 2022, the group announced that Aspen Glove would be significantly scaling down its operations due to the “increasing headwinds” for the medical gloves market.

Aspen Glove is a joint venture between Aspen Group Holdings Ltd and CMY Capital Sdn Bhd, an investment holding company.

Aspen Group Holdings is listed on the Singapore Exchange (SGX). At 4.38pm, its shares rose 0.1 cent or 3.12% to 33 cents, valuing the group at S$38.13 million (RM131 million).