Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 18): Perak Corp Bhd's share price soared as high as 61 sen in morning trade today, up 17.5 sen or 40.23% from its last closing price of 43.5 sen, following its announcement of a debt restructuring plan.

At 9.34am, the stock had pared some gains to settle at 53.5 sen, still up by 10 sen or 22.99%. This marked its highest since May 6, 2019, when the counter closed at 55 sen.

Some 1.93 million shares changed hands, over 50 times its 200-day average trading volume of 35,943.5 shares.

Perak Corp's gains landed it on the second place of Bursa's list of top gainers so far today.

Yesterday, the group announced a debt restructuring with its creditors involving cash settlements worth over RM220 million, issuance of its shares worth over RM30 million, a proposed debt waiver amounting to RM544.55 million, and future settlements by the group's turnaround plan in the ordinary course of business.

The company is selling off four pieces of land to the Social Security Organisation (Socso) for a total of RM78.68 million to settle part of its debts. It added that the debt settlement is part of efforts towards the formalisation of the group’s regularisation plan to uplift itself from its Practice Note 17 (PN17) status.

A sum of RM70.81 million of the sale proceeds will be used for repayment of bank borrowings, and the other RM7.87 million will go into working capital requirements. The "scheme creditors" involved in Perak Corp's debt settlement scheme include Affin Islamic Bank Bhd, CIMB Bank Bhd, Affin Hwang Investment Bank Bhd, Bank Pembangunan Malaysia Bhd and Malaysia Debt Ventures Bhd.  

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