Latest news with #PracticeNote17
The Star
a day ago
- Business
- 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
a day ago
- Business
- 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
- Business
- 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.
New Straits Times
22-05-2025
- Business
- New Straits Times
PN17 companies struggle to stay afloat
KUALA LUMPUR: The potential removal of companies from Bursa Malaysia for failing to submit financial regularisation plans is becoming an increasingly familiar reality in the 2025 corporate landscape. Since January, at least one company has been shown the door, while two more under Practice Note 17 (PN17) face potential delisting amid an increasingly challenging global economic environment. Last month, Reach Energy Bhd became the first to be delisted this year, on April 29, after its third extension request to submit a regularisation plan was rejected. The oil and gas company, once a high-profile special purpose acquisition company (SPAC), had failed to demonstrate a viable turnaround strategy despite repeated assurances. It slipped into PN17 in April 2023, after the shareholders' equity fell below 50 per cent of its share capital as of the fiscal year ended Dec 31, 2022. In terms of financial performance, for the fiscal year ended Dec 31, 2024, Reach Energy reported revenue of RM207.83 million, a slight decrease from RM208.67 million in the previous year. The company recorded a net loss of RM18.11 million, an improvement compared to the RM208.3 million loss in the prior year. On Tuesday, Sarawak Cable Bhd and Annum Bhd were flagged for potential delisting after Bursa rejected their appeals for more time. Both companies are scheduled for trading suspension on May 28, with delisting set for May 30, unless a fresh appeal is submitted and accepted. In early trade, shares of Sarawak Cable and Annum plunged by 56 per cent and 70 per cent, respectively. Sarawak Cable continued to slide throughout the day, ending 62.5 per cent lower at 3 sen with a total of 59.1 million shares traded. Annum tumbled 80 per cent, losing 4 sen to close at 1 sen, with 7.9 million shares changing hands. Tradeview Capital fund manager Neoh Jia Man said while the share price crashes may appear dramatic, they are not out of the ordinary within the current market context. "The share price performance of both firms on Wednesday is not unusual, as it merely reflects the broader weak market sentiment," he told Business Times. Neoh advised investors not to concentrate only on day-to-day share price changes, but to pay closer attention to shifts in a company's fundamentals, especially when firms fail to stabilise their operations, increasing the risk of delisting. "Although the technical triggers for their classification as PN17 or GN3 (under Paragraph 8.03A) differ, the underlying issue is the same: both firms are considered to have insufficient levels of operations to meet ongoing listing requirements," he added. He said there are not any particular industries or sectors that are more prone to delisting, as the risk of being delisted due to inadequate business operations is generally not tied to any specific sector. "Investors should seek to understand the root causes of the potential delisting in each case. It is crucial to engage management on their recovery plans, as this may offer insight into the likelihood of a white knight emergence or the viability of a new business plan," he added. Meanwhile, several other distressed firms have received temporary reprieve. Pertama Digital Bhd and Iskandar Waterfront City Bhd were recently granted six-month extensions by Bursa to finalise their respective regularisation plans. Majuperak Holdings Bhd, a Perak state-linked developer, was given until October 11 to submit its proposal. The developer's turnaround strategy involves several key elements, including acquiring strategic assets, selling off underperforming properties, and investing in renewable energy initiatives. PN17 and Guidance Note 3 (GN3) are designations by Bursa Malaysia for financially distressed companies listed on the stock exchange. These classifications apply to firms experiencing issues such as shareholders' equity dropping below 25 per cent of paid-up capital or loan defaults. Affected companies are required to submit a regularisation plan, typically within 12 months, or risk suspension and potential delisting. Currently, 24 companies are classified under PN17 and GN3 on Bursa Malaysia, representing about 2.34 per cent of the 1,025 listings across the Main and ACE Markets.
Malaysian Reserve
21-05-2025
- Business
- Malaysian Reserve
Reneuco seeks court protection as part of debt restructuring effort
RENEUCO Bhd and six of its subsidiaries have applied to the High Court for a restraining order and proposed scheme of arrangement with creditors, as the financially distressed group moves to stabilise its operations and exit its Practice Note 17 (PN17) status. The application, filed on May 20, aims to shield the group from legal actions—including winding-up petitions and litigation – for a period of three months. The moratorium will provide Reneuco time to finalise a debt restructuring plan under Sections 366 and 368 of the Companies Act 2016. Reneuco was classified as a PN17 issuer in February 2024 after its auditors issued a disclaimer of opinion on its FY2023 financial statements, citing significant uncertainties. The proposed scheme of arrangement will need approval from at least 75% of the total value of creditors present and voting at a court-convened meeting. Once approved, the plan will become binding on all scheme creditors. Reneuco stressed that daily operations will continue as usual, and it does not expect material adverse financial or operational impact from the court order. The group said it will engage with contractual counterparties to manage any potential risks arising from the restraining order. –TMR
