KBB Resources Bhd is designated as an affected listed issuer pursuant to Practice Note No 1/2001 (PN1) of the Main Market listing requirements of Bursa Malaysia Securities due to repayment default.
In a filing to Bursa Malaysia yesterday, KBB’s board of directors said the company and seven of its wholly-owned subsidiaries were in default of 18 banking facilities as they had not been able to make the repayments.
The total amount owed to a number of financial institutions, both local and foreign, was about RM16.11 million as of July 21, 2010.
KBB said it had initiated a debt restructuring plan and had submitted an application to the Corporate Debt Restructuring Committee (CDRC) in respect of the restructuring scheme.
“The default will have a consequence on other ongoing bank borrowings of KBB Group which may also be declared default by other banks,” said KBB, which is involved in manufacturing and marketing of rice and sago sticks.
Nevertheless, KBB said it was currently in a state of solvency and undertook to provide Bursa with the “solvency declaration” duly executed by the board of directors within three market days.
It noted that the declaration would state that the company should be able to pay all its debts in full within 12 months from the date of the announcement.
In a separate filing, KBB announced to Bursa Malaysia that it has appointed Datuk Chin Seak Huat as CEO with effect from yesterday.
It said Chin, 44, started his business career as a sole proprietor and has been involved in the construction and property development business for the past nine years.
“Datuk Chin is also extensively involved in sofa and furniture manufacturing, telecommunication business as well as corrugated cartons and sheet boards industry,” said the company, adding that Chin held five million ordinary shares in KBB.
For the first quarter ended March 31, 2010, KBB’s net profit fell 41% to RM678,000 from RM1.16 million a year ago while revenue rose 22% to RM53.95 million from RM44.16 million. Earnings per share were 0.56 sen while net asset per share stood at 76 sen.
KBB yesterday closed unchanged at 25.5 sen with 360,600 shares traded.
This article appeared in The Edge Financial Daily, July 27, 2010.
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