"It involves our subsidiary in the US, where the main bulk of our losses are. We have to restructure that subsidiary and the US legal system allows us to have a certain restructuring," he told reporters on the sidelines of Invest Malaysia 2009 here today.

He said with the restructuring plan in place, KLK hoped Crabtree and Evelyn would break even next year.

Meanwhile, Lee expected palm oil prices for the next three months to be around RM2,000.

"The lower range for palm prices at about RM2,000 or just above RM2,000 would be very supportive," he said, adding the CPO price forecast was premised on supportive crude oil prices and lower stocks.

He added that palm oil production was also expected to pick up in the second half of the year, given that yields were low mainly due to biological and weather-related issues.

Nevertheless, Lee said overall yield per hectare would still be between 5% and 10% lower this year. He said fertiliser prices were still uncertain, but he expected prices to drop further.