KUALA LUMPUR: Garment manufacturer Baneng Holdings Bhd will be delisted from Bursa Malaysia tomorrow after its lenders decided to discontinue with the proposed debt restructuring the company had embarked on since April 2009.
“The board of directors of Baneng regret to inform that the company, together with the corporate debt restructuring committee (CDRC) and all lenders, have failed to reach an agreement to the proposed debt restructuring scheme, which has been formulated before it was admitted as an affected listed issuer under the PN 17 of the Main Market listing requirements of Bursa Securities on Nov 30, 2010,” it said in an announcement to Bursa Malaysia yesterday.
Baneng said the CDRC convened a meeting with the company and all lenders on Monday to deliberate on the final revised schemes proposed by Baneng.
After the meeting, the CDRC on the same day informed Baneng that the lenders had decided to discontinue with the proposed debt restructuring that it had embarked on with the lenders on April 2009, according to Baneng.
Baneng’s securities were suspended yesterday following its failure to submit a regularisation plan to the Securities Commission or Bursa Malaysia for approval within 12 months from its first announcement on its restructuring scheme on Nov 29, 2010.
Apart from that, Baneng’s application for an extension of time to submit the regularisation plan was rejected, as communicated by Bursa Malaysia to the company on Dec 6, according to its previous announcement to the local stock exchange. It is worth noting that Baneng would continue to exist but as an unlisted company.
“The company is still able to continue its operations and business and proceed with its corporate restructuring and its shareholders can still be rewarded by its performance.
However, the shareholders will be holding shares which are no longer quoted and traded on Bursa Malaysia,” said Baneng.
Baneng manufactures and sells fabrics, garments, apparels and textiles in Malaysia and Brunei. The company saw its net loss narrowed to RM8.98 million for the nine-month period ended Sept 30, 2011 from RM27.99 million the same period a year ago mainly on its cost cutting and consolidation measurements.
Nonetheless, revenue slipped 10% to RM81.43 million during the three quarters ended Sept 30 from RM90.42 million a year ago mainly due to the weak consumer market in the US and its direction to limit operating exposures amid the completion of its proposed debt restructuring scheme.
Loss per share was 14.97 sen versus 48.12 sen previously. The counter closed at 1.5 sen on Tuesday, a day before its suspension.
This article appeared in The Edge Financial Daily, December 15, 2011.
“The board of directors of Baneng regret to inform that the company, together with the corporate debt restructuring committee (CDRC) and all lenders, have failed to reach an agreement to the proposed debt restructuring scheme, which has been formulated before it was admitted as an affected listed issuer under the PN 17 of the Main Market listing requirements of Bursa Securities on Nov 30, 2010,” it said in an announcement to Bursa Malaysia yesterday.
Baneng said the CDRC convened a meeting with the company and all lenders on Monday to deliberate on the final revised schemes proposed by Baneng.
After the meeting, the CDRC on the same day informed Baneng that the lenders had decided to discontinue with the proposed debt restructuring that it had embarked on with the lenders on April 2009, according to Baneng.
Baneng’s securities were suspended yesterday following its failure to submit a regularisation plan to the Securities Commission or Bursa Malaysia for approval within 12 months from its first announcement on its restructuring scheme on Nov 29, 2010.
Apart from that, Baneng’s application for an extension of time to submit the regularisation plan was rejected, as communicated by Bursa Malaysia to the company on Dec 6, according to its previous announcement to the local stock exchange. It is worth noting that Baneng would continue to exist but as an unlisted company.
“The company is still able to continue its operations and business and proceed with its corporate restructuring and its shareholders can still be rewarded by its performance.
However, the shareholders will be holding shares which are no longer quoted and traded on Bursa Malaysia,” said Baneng.
Baneng manufactures and sells fabrics, garments, apparels and textiles in Malaysia and Brunei. The company saw its net loss narrowed to RM8.98 million for the nine-month period ended Sept 30, 2011 from RM27.99 million the same period a year ago mainly on its cost cutting and consolidation measurements.
Nonetheless, revenue slipped 10% to RM81.43 million during the three quarters ended Sept 30 from RM90.42 million a year ago mainly due to the weak consumer market in the US and its direction to limit operating exposures amid the completion of its proposed debt restructuring scheme.
Loss per share was 14.97 sen versus 48.12 sen previously. The counter closed at 1.5 sen on Tuesday, a day before its suspension.
This article appeared in The Edge Financial Daily, December 15, 2011.
