KUALA LUMPUR (May 13): RHB Bank Bhd has declined a request from Daya Materials Bhd's subsidiary Daya Maxflo Sdn Bhd for more time to pay an outstanding sum of RM2.09 million.
"However, Daya Maxflo and the company (Daya Materials) are still in discussion with RHB to regularize the outstanding payment of the trade facilities," it said in a filing with Bursa Malaysia today.
On May 3, Daya Materials announced that its subsidiary Daya Maxflo has not paid the outstanding sum, which was due and payable on the trade facilities granted by RHB Bank.
In the event of a default, Daya Materials said RHB would have the right to terminate and recall the facilities without further notice and take legal action against Daya Maxflo and itself, who is the corporate guarantor for the facilities.
On the same day, Daya Materials also announced that its other subsidiary Daya CMT Sdn Bhd was also overdue on its payment of RM1.48 million to United Overseas Bank (Malaysia) Bhd (UOB), and a RM1.08 million to Malayan Banking Bhd (Maybank).
Daya Materials slipped into PN17 status in February last year, after its shareholders' equity fell below RM40 million and represented less than 25% of its issued share capital as at Dec 31, 2017.
The company saw its net loss widen to RM178.35 million in FY18 from RM76.67 million in the previous year, as revenue declined 4.1% to RM281.56 million from RM293.53 million in FY17.
Shares of Daya Materials closed unchanged today at 1 sen per share, with a market capitalisation of RM20.43 million.