Tanco Holdings Bhd has reached an agreement with lender, Lehman Brothers Commercial Corp Asia Ltd (in liquidation), for the settlement sum of RM144.63 million which would involve the payment of RM44 million cash as well as the transfer and vesting of certain properties at an agreed value of RM100.63 million.
In a filing with Bursa Malaysia yesterday, Tanco said it had, together with a group of borrowers, additional guarantors and limited resource guarantors, inked a settlement agreement on Feb 21 with Lehman Brothers Commercial and Lehman Brothers Pan Asian Investments Limited and Malaysian Trustees Bhd (security agent) to formalise the settlement scheme.
The settlement sum of RM144.63 million was arrived at on a negotiated basis. Shares of Tanco yesterday added one sen to close at 26.5 sen.
The group said the cash settlement sum to the lender would be paid in five instalments over a 12-month period from the date of “consent judgment” or at an extended period as might be agreed upon. It added that the cash settlement sum would be funded through internally generated funds and bank borrowings.
Tanco pointed out that the successful conclusion of the settlement scheme would enable the “Tanco Parties” to substantially settle all its existing secured debts, and consequently there would be a positive impact to the net assets per share of the group as well as a significant reduction in its gearing.
“This estimated positive impact is as a result of a net exceptional gain of approximately RM131 million before taxation effect, if any, arising mainly from the waiver of the remaining secured debts pursuant to the settlement scheme,” said the group, adding that the settlement scheme was expected to be completed by the second half of 2012. - by Yong Min Wei, theedgemalaysia.com
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