KUALA LUMPUR (Nov 19): The High Court on Friday granted Alam Maritim Resources Bhd and its subsidiary Alam Maritim (M) Sdn Bhd an extension of three months from Nov 21 to call for a scheme of creditors meeting, and allowed their request for a restraining order to restrain all legal proceedings against AMSB.

The orders granted by the court were obtained as part of Alam Maritim's overall restructuring and rehabilitation plan by way of a proposed scheme of arrangement with its creditors, Alam Maritim said in a bourse filing.

"Alam Maritim has appointed Sage 3 Sdn Bhd as its financial advisor to assist in this proposed scheme of arrangement," it added.

The court also ordered that Ahmad Ruzaihad Hashim be approved to act as a director of both Alam Maritim and AMSB, according to Alam Maritim.

In May, the group secured the required court orders to facilitate the group's restructuring plan by way of a scheme of arrangement with its creditors.

The orders were granted pursuant to Section 366 of the Companies Act 2016, which is a statutory mechanism that provides relief for companies to propose a compromise with its creditors instead of being wound up.

Then in July, the group announced it had received the Corporate Debt Restructuring Committee (CDRC)’s approval for its application for assistance to mediate between the company and certain subsidiaries, joint-venture companies and associated companies.

“This is part of the company’s proactive efforts to turnaround its business, reposition Alam Maritim to focus on where and how the group’s restructured business should compete and win, ensuring underlying viability and generation of sufficient EBITDA to meet its obligations,” it said then.

Alam Maritim posted a net loss of RM11.81 million in the second quarter ended June 30, 2021 (2QFY21), compared to a net profit of RM381,000 in the corresponding quarter last year, as revenue dropped to RM32.25 million from RM54.41 million.

For the second half ended June 30, the group recorded a net loss of RM21.53 million, a slight decline from the RM22.34 million it incurred in the corresponding January-June period of 2020, while revenue dropped 70.2% to RM47.31 million from RM158.84 million.

According to the group’s website, Alam Maritim operates two business segments namely offshore support vessels and subsea services.

Shares in Alam Maritim ended unchanged at 3.5 sen, giving it a market value of RM53.61 million.