Daya Materials defaults on another AmBank payment, bringing total debt to RM1.53m

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KUALA LUMPUR (July 12): Practice Note 17 (PN17)-status company Daya Materials Bhd said it has defaulted on another payment to AmBank (M) Bhd amounting to RM418,796, bringing its total debt to the bank to RM1.53 million.

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

The group said its failure to pay for the banking facilities was due to Daya CMT's cash flow constraints that resulted in it not being able to pay its payment obligations to AmBank in a timely manner.

"Daya CMT and Daya Materials will discuss with AmBank to regularise the outstanding payment of the total outstanding amount," it said.

Daya Materials said there will not be any significant impact of the default in payment on the business and operations of the remaining businesses of the group.

"The group shall endeavor to continue its other remaining business operations notwithstanding the default and will engage with the lenders and suppliers for their continuous support," it said.

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

Previously, Daya Materials had defaulted on two other payments to AmBank, one amounting to RM835,483 on July 5, and another amounting to RM277,638, which was due on June 27.

In fact, Daya Materials has been defaulting on several credit facilities from other banks since Feb 27, including RHB Bank Bhd, United Overseas Bank (Malaysia) Bhd, SME Bank Malaysia Bhd and MBSB Bank Bhd.  

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