Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Nov 1): Tycoon Tan Sri Halim Saad (pictured) said the board of Sumatec Resources Bhd is still confident of keeping the company afloat, following the announcement of the indefinite suspension of its shares starting next week.

In a statement today, Halim said that Sumatec had, after its restructuring in 2013, assured shareholders that it was debt free — the condition before his entry into the company.

“The company invited various members of the business community (some have resigned since) and all members of the board were independent directors.

“Neither I nor my partner, Abu Talib Rahman were appointed to the board,” he said.

Halim, who has been in the limelight recently after he joined the race to take over PLUS Malaysia Bhd and Gamuda Bhd’s four toll highways, explained that in 2015, a corporate guarantee that was given to “so-called” creditors had surfaced.

And that the company seal was used by two non-executive directors who committed the company to large legacy debts, which related to shipping.

These debts was supposed to be settled through the restructuring exercise in 2013, with the disposal of the shipping business, according to Halim.

“The board did not authorise/approve the guarantee and the use of the company seal. We consider this guarantee as fraudulent and have taken legal action. The matter is still before the court.

“In the meantime, a winding-up order was given and this led to the suspension by KLSE (Bursa Malaysia),” said Halim.

After the guarantee surfaced, Abu Talib appointed himself to the board on July 1, 2016, to handle all court matters.

Halim was appointed to the board on March 30, 2018, to help with the situation, the statement said.

“Sumatec was always short of cash and I have been supporting the group since then. At the peak, I advanced RM86.5 million directly to Sumatec and around RM81.02 million indirectly for the oil and gas operation,” he said.

Furthermore, Halim highlighted that he currently holds only 3% of Sumatec.

In January this year, he ceased to be a substantial shareholder of the company after disposing of 197.3 million shares, which is equivalent to 4.63%, on the open market for RM1.1 million, leaving him with a 3.168% stake.

Nonetheless, he was once Sumatec’s largest shareholder, before he began to pare down his stake in the company in 2018.

Halim had a direct interest of 540.18 million shares or 12.7% of Sumatec as at March 21, 2018, according to the company’s 2017 annual report. A year prior, he held close to 20% equity stake in Sumatec, the annual report 2016 show.

Sumatec has been categorised as a Practice Note 17 (PN17) company since April last year, following an announcement dated Oct 17 when the company said it had received a winding-up order in respect of a winding-up petition.

In the Oct 17 filing, the financially-ailing company said it will be appealing against the High Court's decision in respect of the winding-up order.

The company slipped into PN17 when its external auditors Messrs Grant Thornton Malaysia expressed a disclaimer of opinion on the company's audited financial statements for the financial year ended Dec 31, 2017.

The group received a petition last August from its bondholders demanding payment of RM83.31 million from three collaterialised loans they had extended to Sumatec.

The bondholders, namely Kerisma Bhd, Capone Bhd and Prima Uno Bhd, first called up the debt in 2017 via Malaysian Trustees Bhd, after terminating a settlement agreement on the facilities.

Sumatec was the most actively traded counter on Bursa today with 312.83 million shares changing hands. However, its share price remained unchanged at 0.5 sen at the closing bell, giving it a market capitalisation of RM21.3 million.

      Print
      Text Size
      Share