TH Heavy set to exit PN17 status
KUALA LUMPUR: TH Heavy Engineering Bhd is moving closer to completing its regularisation plan and aims to exit its PN17 status by next year.
Group chief executive officer and chief financial officer Suhaimi Badrul Jamil said the company would submit its regularisation plan to Bursa Malaysia before the October 26 deadline.
“We owe creditors more than RM900 million but as we execute the regularisation plan, we should be able to pare down the figure to around RM65 million,” said Suhaimi after the company’s shareholders meeting, here, yesterday. Also present was independent director Too Kok Leong.
Last week, TH Heavy completed the leasing novation for the Layang floating, production, storage and offloading unit to Yinson Holdings Bhd.
He said the RM374 million proceeds would be used to pay its creditors, adding that the group would need to clean up its balance sheet and hopefully would be able to return to the black for two consecutive quarters.
“Our accounts are due to be audited at the end of this year. When it is completed, we should be able to get out of PN17 status.”
TH Heavy entered into PN17 status on April 28 last year after auditors expressed a disclaimer of opinion on the going concern assumption in the company’s audited financial statements for 2016.
In the first quarter ended March, TH Heavy narrowed its losses to RM14.75 million from RM21.18 million a year ago. Revenue fell 78 per cent to RM186,000, compared with RM2.25 million last year.