KUALA LUMPUR (May 18): Perisai Petroleum Teknologi Bhd plans to undertake a share capital reduction and a rights issue to raise up to RM22.34 million to regularise its Practice Note 17 (PN17) status.
The proposed capital reduction will shrink its share capital to RM40 million from RM770.89 million and give rise to a credit of RM730.89 million, which it will use to offset its accumulated losses, according to its Bursa Malaysia filing today.
Perisai has accumulated losses of RM962.83 million as at June 30, 2017.
As for its planned cash call, Perisai said it will involve the issuance of 223.39 million rights shares at an issue price of 10 sen per rights share on the basis of one rights share for every 2.94 existing Perisai shares held on an entitlement date to be determined later.
In the event of undersubscription of the proposed rights issue, up to 85.88 million placement shares at an issue price of 10 sen per placement share will be offered to be placed out to Sage 3 Capital Sdn Bhd and third party investors to be identified so as to ensure that at least RM8.59 million will be raised.
The proposed regularisation plan also includes a scheme of arrangement with its creditors to settle outstanding liabilities amounting to RM1.67 billion as at June 30, 2017.
It also involves a proposed bilateral settlement to settle the outstanding liabilities owed by Perisai to the inter-company creditors namely Perisai Capital (L) Ltd, Garuda Energy (L) Ltd and Intan Offshore (L) Ltd. As at June 30, 2017, the total amounts owed by Perisai to the inter-company creditors stood at RM627.8 million.
"Barring any unforeseen circumstances, the proposed regularisation plan is expected to be completed by the fourth quarter of 2018," said Perisai.
Perisai fell into PN17 status on Oct 2, 2016 after it defaulted in payment of the principal and interest for S$125 million multi-currency medium term notes.
Perisai shares closed unchanged at 5 sen today, with 1.21 million shares traded, bringing it a market capitalisation of RM63.02 million.