PETALING JAYA: Barakah Offshore Petroleum Bhd has become a Practice Note 17 (PN17) company after it failed to make instalment payments to Export-Import Bank of Malaysia Bhd (Exim Bank) and was unable to provide a solvency declaration to Bursa Malaysia Securities Bhd.
Barakah Offshore’s wholly owned subsidiary Kota Laksamana 101 Ltd had on May 17, 2019, received a notice of demand for the outstanding instalment payments of US$2.65 million (RM11.08 million). The loan with Exim Bank was taken for the financing of the pipe lay barge, Kota Laksamana 101 under an Islamic facility (Ijarah).
KL101 is not able to meet its obligation to repay Exim Bank due to financial constraints and therefore had defaulted its payments to Exim Bank. The company is in the midst of finalising a comprehensive plan to address the group’s current financial concerns which may include restructuring all its banking facilities.
“The group is in the midst of finalising a scheme to restructure the group’s debt with Exim Bank and past due creditors as part of a comprehensive plan to address the group’s current financial concern, so that the group will be able to continue its current operations and meet its obligations for the current projects that the group is currently executing,” Barakah said.