Friday 29 Mar 2024
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KUALA LUMPUR (Oct 31): Practice Note 17 (PN17) company Daya Materials Bhd says today it has defaulted RM65,171.14 in debt repayment to Public Bank Bhd due to “cash flow constraint”. 

In a bourse filing, the group said it has received a notice of demand and intention to repossess from Public Bank.

"The  notice of demand arose due to failure of Daya Materials to pay the monthly instalments under a hire purchase facility granted by the bank," it said. This in turn was due to cash flow constraints faced by the group that resulted in it not able to meet its payment obligations to pay Public Bank in a timely manner.

Following this, Public Bank has terminated and recalled the said hire purchase facility and will be taking relevant legal action against the group.

"The group will discuss with Public Bank to regularise the outstanding payment of the hire purchase facility," said Daya Materials.

“There will not be any significant impact of the default in payment on the business, financial and operations of the remaining business of the group,” it added.

Nevertheless, Daya Materials said it endeavours to continue its other remaining business operations notwithstanding the default and will engage with the lenders and suppliers for their continuous support.

Noting that it is putting in place several fund raising exercises and debt regularisation plan, Daya Materials said it will be able to repay the principal and interest due on the outstanding sums on the basis that the assets disposal and assets monetisation would be able to repay the principal and interest due on the outstanding sums.

Notably, 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 this year, including Malayan Banking Bhd, MBSB Bank Bhd, Small Medium Enterprise Development Bank Malaysia Bhd, United Overseas Bank (Malaysia) Bhd, RHB Bank Bhd, Hong Leong Bank Bhd, AmBank (M) Bhd, as well as Al-Rajhi Banking & Investment Corp (Malaysia) Bhd.

Shares of Daya Materials closed unchanged at 0.5 sen today, valuing the group at RM10.21 million.
 

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