KUALA LUMPUR: Malaysia Pacific Corp Bhd (MP Corp), a Practice Note 17 (PN17) company, has been served with a winding-up petition by RHB Bank Bhd, demanding repayment of debt totalling RM118.16 million.
The case management is fixed for today, MP Corp said in a stock exchange filing yesterday. “The company will be seeking legal advice on the above and will make further announcement in due course,” it added.
The debt-laden company’s balance sheet shows its main assets were land held for development that was worth RM211.8 million and current assets held for sales that were worth RM256 million as at Sept 30, 2017. Its net asset per share stood at 46 sen per share.
MP Corp, which has accumulated losses of RM154.08 million, has been wanting to sell part of Wisma MPL that it bought from tycoon Tan Sri Quek Leng Chan to raise fresh funds to revive its financial health. Unfortunately, the company has yet to find a buyer for the office building located in the ‘Golden Triangle’ along Jalan Raja Chulan. It is not easy to find a buyer mainly because it is a strata-titled office block.
The company is facing a cash-flow problem. It had a negative cash flow of RM92.1 million as at Sept 30, 2017.
On June 14, 2016, MP Corp had received a notice of statutory demand from RHB Bank, seeking the repayment of the debt or risk winding-up petition proceedings against the company.
The sum comprises RM43.64 million in revolving credit facilities, and two overdraft facilities amounting to RM74.52 million as at June 8, 2016.
The bank is also demanding for interest to be calculated at 3.5% per annum, plus the base lending rate on monthly rest from June 9, 2016 onwards, until the date of full settlement.
Additionally, it is seeking an interest of 3% per annum on the principal sum of RM25.7 million, plus the cost of fund, to be calculated from June 9, 2016 until the date of full settlement.
MP Corp fell into PN17 status after its external auditors expressed a disclaimer opinion on its latest audited accounts in December 2014.
The company’s shares were last traded at 12 sen, giving it a market capitalisation of RM34.52 million.