Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on September 12, 2019

KUALA LUMPUR: Loss-making Sarawak Cable Bhd (SCable) said it had received approval from the Corporate Debt Restructuring Committee (CDRC) to help the company and certain of its subsidiaries to resolve debt issues with their respective lenders.

This follows a report by The Edge Malaysia weekly on Monday that SCable had sought assistance from CDRC, which comes under the purview of Bank Negara Malaysia, to better manage its borrowings.

SCable said notwithstanding this, the operations of the company and its subsidiaries will remain as usual.

In a bourse filing yesterday, SCable said it received a letter on Aug 7 from CDRC approving the company’s application for assistance to mediate with its creditors.

“This is part of the company’s proactive effort in managing its debt exposure to safeguard [the company and certain of its subsidiaries], whose core businesses are still viable.

“Further announcements will be made in due course as and when appropriate,” it added.

Earlier, The Edge Malaysia weekly had quoted SCable managing director Datuk Ahmad Redza Abdullah as saying that the company was working on a restructuring proposal with its advisers, but there would be no haircut for its borrowings.

It was also reported that SCable had appointed EY to help with the restructuring.

According to its annual report, SCable’s principle bankers are AmBank (M) Bhd, Bank of China (Malaysia) Bhd, Bank Muamalat Malaysia Bhd, CIMB Bank Bhd, Export-Import Bank of Malaysia Bhd and Hong Leong Bank Bhd.

As at end-June, SCable’s cash and bank balances stood at RM27.05 million, while its short- and long-term debt commitments totalled RM505.64 million and RM101.22 million respectively.

SCable shares closed up one sen or 3.7% at 28 sen yesterday, bringing a market capitalisation of RM88.77 million.

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