Scomi Rail gets Maybank demand for RM201.91m

14 Feb 2019 / 11:26 H.

PETALING JAYA: Cash-strapped Scomi Group Bhd’s unit Scomi Rail Bhd has received a notice of demand dated Jan 25 from Malayan Banking Bhd (Maybank) for RM201.91 million for failing to pay the bank facilities.

In a filing with Bursa Malaysia, Scomi Group said it also received a notice of demand dated Jan 31 for the sum of RM113.96 million due to Scomi Rail’s default.

The group said Maybank reserves the right to take steps to dispose the shares of a subsidiary that was secured against the bank facilities in the event the amount demanded is not paid.

Scomi Rail, the borrower, is a wholly owned subsidiary of Scomi Engineering Bhd, which in turn is a wholly owned subsidiary of Scomi Group.

In terms of legal implications, Maybank has the right to proceed with legal proceedings against Scomi Rail, provided leave of court is obtained in view of the pending application for judicial management.

By virtue of the cross default provision of the financing documents, the respective financiers have the right to declare the financial facilities be canceled and shall become due and payable immediately, following which the financiers may enforce on the securities created under the respective financing documents.

Scomi Rail and Scomi Group are currently negotiating a resolution with Maybank. The group said there are no business, financial and operational impact from the default at present.

Last month, Scomi Group’s 65.64%-owned Scomi Energy Services Bhd said that the parent group owes it RM47.83 million in relation to a shared service agreement and advances as at end of 2018.

The unpaid RM47.83 million is part of the total RM64.33 million of advances and monies due under the shared service agreement between Scomi Energy Services and Scomi Group.

Scomi Group’s share price fell 10% or half sen to close at 4.5 sen yesterday with 1.68 million shares traded.

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