Perwaja 3Q loss widens to RM227m; defaults on debts, sinks into PN17 slot

by **Cals** Wed 27 Nov 2013, 00:19

Business & Markets 2013

Written by Ho Wah Foon of theedgemalaysia.com

Tuesday, 26 November 2013 21:22

KUALA LUMPUR (Nov 26): Perwaja Holdings Bhd (PHB) said its net loss for the third quarter to September 2013 had widened to RM227.1 million, from a loss of RM38.3 million in similar quarter a year ago.

Revenue for the quarter fell to RM236.0 million, from RM372.0 million a year ago.

For the nine months to September 2013, total loss stood at RM319.8 million, on revenue of RM899.2 million.

The steel manufacturer also announced that its major subsidiary, Perwaja Steel Sdn Bhd, will not be able to pay off the Murabahah Medium Term Notes of RM50 million, that falls due on Nov 29.

The reason given was that the electricity at the company’s Kemaman Plant has been disconnected by Tenaga National Berhad (TNB).

“There is, therefore, no visibility of when this MMTN repayment will be made,” said Perwaja.

Perwaja (PHB) added, it is now a PN17 Issuer, as the company has triggered the following criteria:

a) The auditors have expressed an emphasis of matter on PHB and its subsidiaries’ ability to continue as a going concern in the audited consolidated financial statements, for the financial year ended 31 December 2012, and the shareholders’ equity of PHB based on a consolidated basis, as at 30 September 2013, is less than 50% of the issued and paid-up capital of the company; and
b) A default in payment by its major subsidiary company, Perwaja Steel Sdn Bhd, today, and PHB, is unable to provide a solvency declaration to the stock exchange.