Daya Materials inks debt settlement agreements with creditors

Daya Materials inks debt settlement agreements with creditors
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KUALA LUMPUR (March 16): Daya Materials Bhd today inked a series of agreements as part of its debt restructuring scheme, following the approval in principle from its creditors in July last year.

The Practice Note 17 company, in a bourse filing, said it signed seven supplemental agreements and two debt settlement agreements with its creditors.

The creditors comprise Malayan Banking Bhd, United Overseas Bank (M) Bhd, RHB Bank Bhd, Hong Leong Bank Bhd, Al Rajhi Banking & Investment Corp (M) Bhd, Public Islamic Bank Bhd, Propel Global Bhd, Export-Import Bank of Malaysia Bhd, and Siem Offshore Rederi AS.

“All the defaulted debts will be restructured and settled in accordance with the respective agreements,” the oil and gas services group said.

The debt restructuring was part of a regularisation plan that Daya Materials had to submit to regulators by the end of September 2020, following a series of defaults in 2019.

Daya Materials slipped into PN17 status in February 2019, after its shareholder equity fell below 25% of its issued capital of RM40 million.    

At end-2020, Daya Materials had net liabilities of RM197.79 million, with retained losses of RM478.82 million. Overall, the group’s capital deficiency stood at RM199.34 million.

Shares of Daya Materials rose one sen to close at two sen today, giving the group a market capitalisation of RM40.86 million.

S Kanagaraju