KUALA LUMPUR (Feb 6): Bank Negara Malaysia (BNM) has agreed to mediate between loss-making Marine & General Bhd’s (M&G) and its financiers.

In a filing, M&G said its unit Jasa Merin (M) Sdn Bhd (JMM) had received approval from BNM’s corporate debt restructuring committee (CDRC).

CDRC will mediate between JMM and its lenders to renegotiate their respective financing facilities on terms that can be sustained in the face of this challenging period for the oil and gas industry, M&G said.

“The successful mediation will enable JMM to be better positioned in the upstream marine logistics segment and ensure its underlying viability, going forward,” the group said.

As part of the approval, CDRC is required to submit a proposed debt restructuring scheme within 60 days.

JMM’s admission to CDRC is also limited to 12 months or upon signing of a debt structuring agreement, whichever being earlier.

“This admission to CDRC is consistent with M&G’s strategy to streamline its operations and optimise its financial resources to focus and proactively enhance both its upstream and downstream marine logistics business, pursuant to M&G’s disposal of its entire investment in Sistem Lingkaran-Lebuhraya Kajang Sdn Bhd (SILK Highway),” M&G said.

In March last year, the group which was then called SILK Holdings Bhd, had obtained approvals of both sukuk holders and shareholders for the divestment of SILK Highway to Permodalan Nasional Bhd (PNB) for RM380 million cash.

M&G’s share price closed down one sen or 5.41% to 17.5 sen today, giving it a market capitalisation of RM126.7 million.