Maybank grants another extension to Scomi over unit’s default

This article first appeared in The Edge Financial Daily, on May 16, 2019.
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KUALA LUMPUR: Scomi Group Bhd has secured an extension until May 29 to respond to Malayan Banking Bhd (Maybank) regarding the bank’s demand for RM201.91 million and RM113.96 million from the group.

“Maybank had, via its letter dated May 15, 2019, granted the group a further extension of time until May 29, 2019,” Scomi said in a stock exchange filing yesterday.

This is the sixth extension the group has had since Maybank first issued a notice of demand to Scomi Rail Bhd (SRB), Scomi’s wholly-owned unit, for RM201.91 million in February after SRB defaulted on payment for a loan granted.

On the same day, the bank demanded RM113.96 million from Scomi due to SRB’s failure to pay the default, though Scomi argued that there was no default since it had obtained more time from Maybank — until March 8 at the time — to revert to Maybank on the matter.

Last week, Maybank put SRB under receivership.

Shares in Scomi closed half a sen or 5.26% higher at 10 sen yesterday, giving the group a market capitalisation of RM96.02 million.