Kinsteel's major subsidiary under receivership

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KUALA LUMPUR: Kinsteel Bhd, which is currently in liquidation,  announced that Standard Chartered Malaysia Bank has put its 51%- owned subsidiary — Perfect Channel Sdn Bhd (PCSB) — under receivership after the unit defaulted on its loan repayment.

PCSB is the major subsidiary of Kinsteel. The company's net book value of the charged assets was at RM165.09 million as at June 30 last year, according to the filing with Bursa Malaysia this evening.

The bank yesterday appointed Datuk C Narendrakumar of Grant Thornton Consulting Sdn Bhd as receiver over the charged assets of PCSB under the powers contained in the debenture (Plant, Machinery and Equipment) dated June 12, 2007 and debenture dated Oct 18, 2006 created by PCSB in favour of Standard Chartered Malaysia for the facilities granted by the bank.

PCSB is principally engaged in manufacturing and trading of steel beams, sections, bars, wire rods, nails, stretched wire, wire mesh and other steel products.