PETALING JAYA: Kinsteel Bhd has been granted an extension until Dec 31, 2019 by Bursa Malaysia to submit a regularisation plan in order to lift its Practice Note 17 (PN17) status.
According to the group’s Bursa disclosure, it might face a possible delisting from the stock exchange in the event of failure to submit a regularisation plan or obtain approval for the implementation of said plans from the authorities.
Last week, Kinsteel unveiled its revamp plan, including a 70% share capital reduction from RM83 million to RM24.9 million.
The credit from the proposed capital reduction of RM58.1 million will be used to offset its accumulated losses, which stood at RM865 million as at June 30, 2019.
Kinsteel is also seeking to raise up to RM46.6 million via a special issue of new shares with free warrants to selected placees; and a rights issue of new shares with free warrants to existing shareholders.
In addition, the group proposed a disposal of five parcels of industrial land for RM140 million.
Kinsteel also proposed a settlement of RM159.7 million inter-company debt owed by Perfect Channel Sdn Bhd, as well as a proposed scheme of arrangement and compromise with the creditors of Kinsteel involving total liabilities of RM1.68 billion as at June 30, 2017.
The group was first affected by the PN17 status in October 2016, after its auditor expressed a disclaimer of opinion in its audited financial statements for FY16, when its current liabilities exceeded current assets.
