Perwaja Steel gets 180 days more to keep creditors at bay

PETALING JAYA: Perwaja Holdings Bhd's unit Perwaja Steel Sdn Bhd (PSSB) has been granted an extension of 180 days – from tomorrow till Dec 31, 2015 – to restrain all further proceedings, and any and all actions or proceedings brought by any party including its scheme creditors to restructure its debt.
The extension is to facilitate PSSB to convene a meeting with its creditors for the purpose of considering and if thought fit, to approve with or without any alteration or modification, a proposed scheme of arrangement and compromise for PSSB.
In a filing to Bursa Malaysia, Perwaja said the order is not expected to have any material impact on the financial and operational matters of the company as it is to solely facilitate and finalise the company's scheme of arrangement.
For the financial year ended Dec 31, 2013, the company posted a net loss of RM420.9 million compared to net loss of RM232.25 million in same period a year earlier was mainly driven by zero production and low sales volume.
The order is not applicable against Tenaga Nasional Bhd, RHB Bank Bhd, Standard Chartered Bank Malaysia Bhd, Kuwait Finance House (Malaysia) Bhd, OCBC Bank (Malaysia) Bhd, Petroliam Nasional Bhd (Petronas) and the Government of Malaysia.
Perwaja has already signed settlement agreements with TNB and Petronas.