Stone Master issues shares to settle debt

PETALING JAYA: Stone Master Corporation Bhd (SMCB) has issued 7.65 billion settlement shares at a price of 40 sen to settle RM3.06 billion outstanding debt owed to 25 creditors.
SMCB said it executed 25 settlement agreements with each of the respective creditors yesterday.
Except for its two major shareholders, executive chairman Datuk Eii Ching Siew and deputy managing director Datin Chan Chui Mei, the other 23 creditors had agreed to relinquish their right as shareholders of SMCB.
"Despite a dilutive effect on the existing shareholders' shareholdings in SMCB as a result of issuance of the settlement shares, the proposed special issuance is expected to have the following positive effects: (a) reduce SMCB's debt without any cash outflow; (b) the equity base and net assets of SMCB will be enhanced; and (c) enable SMCB to improve its financial results," it said.