KUALA LUMPUR (Aug 2): Practice Note 17 (PN17) company Daya Materials Bhd said it has defaulted on additional payments to AmBank (M) Bhd amounting to RM392,235, raising its total outstanding debt to RM7.7 million.

In a filing with Bursa Malaysia today, Daya Materials said its subsidiary Daya CMT Sdn Bhd (DCMT) has defaulted on the payment which was due today in relation to banking facilities granted by AmBank to the company.

“Failure to pay was due to cash flow constraints of DCMT that resulted in it not being able to meet its payment obligations to AmBank in a timely manner.

“DCMT and the company will discuss with Ambank to regularise the outstanding payment of the total outstanding amount,” it said.

It added that the board is putting in place several fund-raising exercises to address the issue.

Without disclosing any details, it said the fund-raising exercises will be able to repay the principal and interest due on the total outstanding amount.

This is not the first bank Daya Materials has defaulted on payments, as it has been defaulting on several credit facilities from other banks since Feb 27 including RHB Bank Bhd, United Overseas Bank (Malaysia) Bhd (UOB), SME Bank Malaysia Bhd and MBSB Bank Bhd.

Shares of Daya Materials closed unchanged today at 1.5 sen, for a market capitalisation of RM30.64 million.