KUALA LUMPUR (Jan 21): Scomi Energy Services Bhd’s Practice Note 17 (PN17) status is confirmed, after its waiver application was rejected by Bursa Malaysia.

In a statement today, Bursa said Scomi Energy joins its parent company Scomi Group Bhd on the list, and is the 24th company on the bourse to be listed as PN17.

Scomi Energy first triggered the PN17 status on Oct 31, 2019, after its shareholders’ equity on a consolidated basis fell below 50% of its issued share capital as at June 30.

Also, its external auditors KPMG PLT had expressed material uncertainty related to the going concern of the company in the audited financial statements for the financial year ended June 30, 2019 (FY19).

The company subsequently submitted a PN17 waiver application to Bursa Malaysia on Nov 1.

In a separate filing, Scomi Group said it has been slapped with a letter of demand for loan repayments of RM21.85 million each from businessman Tan Sri Wan Azmi Wan Hamzah and Gelombang Global Sdn Bhd (GGSB), after the group failed to repay both parties by Jan 17.

In July 2019, Wan Azmi and GGSB (which is controlled by former Renong Bhd managing director Datuk Mohd Zakhir Siddiqy Sidek), said they would invest RM42 million collectively in the ailing company by injecting the capital via a proposed rights issue.

Both are now demanding immediate repayment within five days from the letter of demand.

Scomi Group said it has defaulted on the loans, as it is unable to repay by the deadline due to financial constraints.

“The management of the company is engaging with [Wan Azmi] and GGSB on this matter and intends to submit a comprehensive proposal to restructure the loan facility,” it added.

Shares of Scomi Group and Scomi Energy had earlier been suspended pending these announcements. Scomi last traded at 4.5 sen and Scomi Energy at 7 sen.