KUALA LUMPUR (June 8): Scomi Group Bhd said it has accepted a settlement proposal with Malayan Banking Bhd (Maybank) with regards to the material litigation raised by the lender in the High Court.  

"Following several discussions between both parties, the settlement sum agreed is RM8 million which is to be paid in full on or before July 29," Scomi said in a statement.
 
The terms of the settlement proposal includes the payment of the settlement sum and the company entering into a consent judgement with Maybank on the material litigation by Thursday (June 9) for the original claimed sum by Maybank of RM113.96 million along with interest, withdrawal of all suits and claims by the company against Maybank as well as payment of legal fees and expenses of RM200,000 incurred by Maybank.
 
In return Maybank will withhold enforcement or execution of the consent judgement against the company until July 29. Upon settlement of the RM8 million, Maybank will discharge and release Scomi from the liabilities and obligations of the consent judgement and also release the Scomi Energy Services Bhd shares owned by the company pledged to Maybank back to Scomi.
 
"The acceptance of this settlement proposal will facilitate the restructuring of the liabilities of the company as Maybank is a major creditor of the company. Hence it is a positive step and augments the various initiatives being planned towards the upliftment of its PN17 status," said Scomi.  

Scomi fell into PN17 status in December 2019 after its shareholders’ equity spread slipped below 25% of its issued share capital and its equity dropped below RM40 million based on its financial results for the quarter ended June 30, 2019.

On June 1, the company updated in a filing that it had submitted an appeal against its delisting to Bursa Securities on April 18.