KUALA LUMPUR (July 17): Daya Materials Bhd, a Practice Note 17 (PN17) company, has obtained 75% approval in principle from its creditors for its proposed debt restructuring scheme.  

This was confirmed at a meeting chaired by the Corporate Debt Restructuring Committee (CDRC), the oil and gas service provider said in a filing with Bursa Malaysia today.  

“Further announcement on the developments of the above matter will be made as and when necessary,” the company said.  

Daya Materials had requested CDRC to mediate its discussion with its financiers on Aug 30, 2019.  

In January 2019, Daya Materials announced a debt restructuring exercise to set off RM32.46 million of debt owed to joint venture partner Perfect Propel Sdn Bhd via the issuance of new shares in Daya Materials, but the proposal was terminated last November due a failure to meet the conditions precedent.  

The debt restructuring was part of a regularisation plan that Daya Materials had to submit to regulators by the end of September 2020.  

The group slipped into PN17 status in February last year after its shareholder equity fell below 25% of its issued capital of RM40 million.  

At end-March, Daya Materials had net current liabilities of RM190.86 million, with retained losses of RM470.98 million, as the group heads for its seventh consecutive year in the red for the financial year ending Dec 31, 2020.

Daya Materials shares closed at 1.5 sen today, valuing the group at RM30.64 million.