Ho Hup Construction default on credit facilities totalling RM45.27mil
KUALA LUMPUR: Ho Hup Construction Company Bhd has defaulted on revolving credit facilities totalling RM45.27 million, prompting a legal action by AmBank Islamic Bhd (AIB).
In a Bursa Malaysia filing today, the company stated that it received a notice of demand and termination dated May 29, 2025, from Lee & Koh, acting for AIB, regarding the respective credit facilities, on June 4, 2025.
It said the outstanding amount represents 13.37 per cent of Ho Hup's net assets of RM338.48 million based on audited results for the financial year ended Dec 31, 2023, and 31.97 per cent of its latest reported net assets of RM141.60 million.
"The default in payment arose due to the failure of the company to pay the instalment payments on the principal and interest due to cashflow difficulties," it said.
On April 18, 2025, the company was classified as a Practice Note 17 listed issuer and is currently under the restraining order.
"The company plans to engage with AIB and other creditors on a debt restructuring proposal to regularise its financial position.
"The company has appointed an independent financial advisor to engage with the creditors for this purpose," it added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 days ago
- The Star
Ho Hup Construction defaults on credit facilities totalling RM45.27mil
KUALA LUMPUR: Ho Hup Construction Company Bhd has defaulted on revolving credit facilities totalling RM45.27 million, prompting a legal action by AmBank Islamic Bhd (AIB). In a Bursa Malaysia filing today, the company stated that it received a notice of demand and termination dated May 29, 2025, from Lee & Koh, acting for AIB, regarding the respective credit facilities, on June 4, 2025. It said the outstanding amount represents 13.37 per cent of Ho Hup's net assets of RM338.48 million based on audited results for the financial year ended Dec 31, 2023, and 31.97 per cent of its latest reported net assets of RM141.60 million. "The default in payment arose due to the failure of the company to pay the instalment payments on the principal and interest due to cashflow difficulties,' it said. On April 18, 2025, the company was classified as a Practice Note 17 listed issuer and is currently under the restraining order. "The company plans to engage with AIB and other creditors on a debt restructuring proposal to regularise its financial position. "The company has appointed an independent financial advisor to engage with the creditors for this purpose,' it added. - Bernama
New Straits Times
2 days ago
- New Straits Times
Ho Hup Construction default on credit facilities totalling RM45.27mil
KUALA LUMPUR: Ho Hup Construction Company Bhd has defaulted on revolving credit facilities totalling RM45.27 million, prompting a legal action by AmBank Islamic Bhd (AIB). In a Bursa Malaysia filing today, the company stated that it received a notice of demand and termination dated May 29, 2025, from Lee & Koh, acting for AIB, regarding the respective credit facilities, on June 4, 2025. It said the outstanding amount represents 13.37 per cent of Ho Hup's net assets of RM338.48 million based on audited results for the financial year ended Dec 31, 2023, and 31.97 per cent of its latest reported net assets of RM141.60 million. "The default in payment arose due to the failure of the company to pay the instalment payments on the principal and interest due to cashflow difficulties," it said. On April 18, 2025, the company was classified as a Practice Note 17 listed issuer and is currently under the restraining order. "The company plans to engage with AIB and other creditors on a debt restructuring proposal to regularise its financial position. "The company has appointed an independent financial advisor to engage with the creditors for this purpose," it added.
New Straits Times
23-05-2025
- New Straits Times
Barakah Offshore shares crash over 80pct after delisting notice
KUALA LUMPUR: Shares of Barakah Offshore Petroleum Bhd plunged more than 80 per cent to rock bottom, following news that the financially troubled oil and gas services firm faces a trading suspension and potential delisting from Bursa Malaysia. The counter opened at two sen before collapsing 83.33 per cent to half a sen by 9.20am, with 13.4 million shares traded, its highest volume in at least six months. The sell-off came after Barakah announced yesterday that Bursa Malaysia had rejected its application for more time to submit a regularisation plan under the Practice Note 17 (PN17) classification. Barakah has been classified as a PN17 company since 2019, after defaulting on payments to EXIM Bank related to a pipelay vessel. The company has now been given until May 30 for the trading suspension to take effect, with its securities set to be delisted on June 4 unless an appeal is submitted and approved by Bursa. In October 2024, Barakah had proposed a regularisation plan involving a RM195 million capital reduction, a three-into-one share consolidation and a private placement of 62.5 million new shares to its executive chairman to raise RM7.5 million. However, the plan was later withdrawn following a RM78.8 million adjudication award in Barakah's favour, prompting a reassessment of its restructuring strategy. Despite the award, the group remains in a precarious financial position. For the financial year ended June 30, 2024, Barakah reported accumulated losses of RM133.76 million, short-term borrowings of RM52.05 million, and a negative operating cash flow of RM13.36 million.
