TH Heavy Engineering to extend maturity of sukuk

PETALING JAYA: TH Heavy Engineering Bhd (THHE) has written to the Securities Commission Malaysia to update the regulator on the variation of terms to extend the maturity date of its non-rated sukuk murabahah of up to RM170 million by one year, from Sept 30, 2016 to Sept 29, 2017.

The offshore fabrication and marine services company said it also updated the SC on the status of compliance with the relevant requirements as set out in the guidelines on unlisted capital market products under the Lodge and Launch Framework issued by the SC.

In 2003, THHE said proceeds from the sukuk murabahah will be used to refinance part of THHE’s existing Islamic term financing, for working capital purposes and for expenses related to the debt issue.

Last month, THHE’s wholly owned subsidiary O & G Works Sdn Bhd received a winding-up petition with a claim for RM688,728.23. The loss-making group has received 10 winding-up petitions since July this year with claims amounting to over RM45 million.

As at June 30, 2016, THHE’s loss widened to RM40.29 million on an almost 67% drop in revenue of RM22.24 million compared with the corresponding period the year before.