The lifestyle credit card provider Oriental CIty group has announced its first piece of significant news in 5 months. The firm has revealed that on 11th February this year the Siam Commercial Bank served a 3-month written notice for the termination of the participation agreement in respect of electronic data capture machines entered into between the bank and Oriental’s subsidiary in Thailand in 2006. The termination came into effect on 10th May 2010 – which means that the company has taken 71 days to inform the market of this material event. Thailand was Oriental City’s core market, making up the majority of revenues in the last financial year.

Following the termination the merchants introduced by the bank have been lost and the number of point of sales terminals operated by the group has dropped from 499 to 157. The group added that due to ongoing political tensions in Thailand it is looking at business opportunities elsewhere.

Oriental City Group’s mid-price is 0.5p, which gives it a market capitalisation of only £180,000. But considering that the majority of the operating business has been lost and that the firm has awful corporate governance procedures the only stance can be avoid.