Perwaja Steel goes into receivership

This article first appeared in The Edge Financial Daily, on March 9, 2018.
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KUALA LUMPUR: RHB Bank Bhd has appointed a receiver to take possession of and sell the properties of Perwaja Steel Sdn Bhd, a wholly-owned subsidiary of ailing steel maker Perwaja Holdings Bhd, in order to repay the outstanding debt.

A notice dated Jan 24 obtained by The Edge Financial Daily showed that RHB Bank had appointed Messrs Rodgers Reidy & Co as a receiver to handle the properties of Perwaja Steel.

Perwaja Steel had ceased its business operations since October 2013.

It was reported in February 2017 that Perwaja Group, which has outstanding debts of about RM2 billion, owed utility providers Tenaga Nasional Bhd and Petronas Gas Bhd over RM400 million in electricity bills and gas supplied. It was also said to owe the government over RM200 million, with the rest owed to banks and other parties.

According to its 2016 Annual Report, Perwaja’s outstanding borrowings and bank overdrafts as at June 30, 2016 amounted to RM1.07 billion and RM45 million respectively.

Perwaja was delisted from Bursa Malaysia on May 30, 2017 after four years of being a Practice Note 17 company.