Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on January 16, 2019

KUALA LUMPUR: Debt-laden oil and gas services company Barakah Offshore Bhd announced yesterday that it is still negotiating a debt settlement proposal with its lenders and creditors.

In a filing with Bursa Malaysia yesterday, Barakah said it will continue engaging with its lenders and creditors to achieve an amicable debt settlement proposal.

“Meanwhile, the board of directors will also seek all legal avenues to protect Barakah and its subsidiaries when necessary, while a debt settlement proposal is being negotiated with the group’s lenders and creditors,” it added.

This follows a Kuala Lumpur High Court order to restraint any proceedings and actions by the lenders against Barakah and its wholly-owned unit PBJV Group Sdn Bhd that expired on Monday.

“The board wishes to inform that as at the date of this announcement, none of the Barakah group’s lenders has called for an event of default on any of the group’s financing facilities,” said Barakah.

The restraining order was obtained on Oct 12 last year. When announcing the order on Oct 16, Barakah said it had applied “as part of proactive measures” to manage its debt levels, so it can negotiate terms with its lenders and creditors without the threat of any actions taken against the group.

As at Sept 30, 2018, Barakah had a negative cash position against short- and long-term borrowings of RM28.43 million and RM172.71 million respectively.

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