BUSINESS

BHIC PROPOSES RM417 MLN DEBT SETTLEMENT PLAN WITH THREE BANKS AND BHB

06/12/2023 09:41 PM

KUALA LUMPUR, Dec 6 (Bernama) -- Boustead Heavy Industries Corporation Bhd (BHIC) has proposed to partially settle its RM183.26 million debt with three lenders and fully settle a RM234 million debt with Boustead Holdings Bhd (BHB) before the cut-off date of Dec 31, 2023.

BHIC told the stock exchange that the total RM183.26 million owed to three banks, namely Affin Bank Bhd (RM30 million), MBSB Bank Bhd (RM63.25 million), and AmBank Islamic Bhd (AmIslamic) (RM90 million), would be settled via a combination of cash and the issuance of new ordinary shares and “Class A” redeemable convertible preference shares, both conventional (RCPS A) and Islamic (RCPS-i A), at an issuance price of 57 sen per share. 

For the RM234 million debt with BHB, it would be settled via the issuance of new BHIC shares, “Class B” redeemable convertible preference shares (RCPS B) and “Class C” redeemable preference shares (RPS C), also at 57 sen apiece.

BHIC said no cash proceeds would be raised from the proposed debt settlement with the lenders as it is undertaken to partially settle the outstanding financing facilities as of the cut-off date owed by BHIC to the lenders. 

“Further, no proceeds would be raised by the company upon conversion of the RCPS A and RCPS-i A into new BHIC shares. For the avoidance of doubt, the proposed MBSB settlement and proposed AmIslamic settlement, and the issuance of the RCPS A-i to MBSB and AmIslamic shall be done in a Shariah-compliant manner,” it said.

BHIC said it is paramount for the group to undertake a restructuring of its debts to ensure the sustainability of its earnings, cashflow and future capital expenditure requirements moving forward.

Based on the unaudited financial results of BHIC for the period ended Sept 30, 2023, BHIC has shareholders’ funds of RM53.5 million after taking into account its accumulated losses of RM195 million. It recorded a net cash and cash equivalents position of negative RM16.1 million.

-- BERNAMA


BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 IFLIX channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.

Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial

© 2024 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy