Perwaja gets CDRC help to restructure debts

by **Cals** Fri 27 Sep 2013, 22:51

Business & Markets 2013

Written by Ho Wah Foon of theedgemalaysia.com

Friday, 27 September 2013 19:06

KUALA LUMPUR (Sept 27): Perwaja Holdings Bhd (PHB) announced that the government’s Corporate Debt Restructuring Committee (CDRC) has agreed to render help in its negotiations with creditors for a debt restructuring programme.

The steel company said CDRS has approved its application for assistance to mediate between Perwaja and its lenders subject to the followings:-

1) PHB is required to submit a proposed restructuring scheme within 60 days from Sept 26, 2013; and
2) The proposed restructuring scheme must comply with CDRC’s restructuring principles for PHB to continue to remain under the Informal Standstill Arrangement with the Lenders.

Giving the rationale for the debt restructuring, PHB said: “By restructuring and re-terming the tenure of the liabilities of PHB, it is expected that the PHB will be in a better position to meet their working capital needs in the future to continue and improve their operations while servicing their debt obligations.”

In addition to aiding its proposed concentration and pelletising plants currently being constructed by the company, the restructuring will be required to help in the turnaround of the company, it added.

“With the proposed restructuring, PHB will be able to support the local steel industry and continue to provide employment for its employees and the dependents amounting to over 15,000 people,” said Perwaja.

PHB also said its senior managers have taken a 75% pay cut in salaries to align their interests alongside stakeholders to show their commitment towards the turnaround of PHB.