CDRC action adds to LCL’s setback

LCL Corp Bhd suffered another setback after the Corporate Debt Restructruing Committee (CDRC) “terminated LCL Corp’s admission” for failing to submit a revised regularisation plan for its review.

In February LCL had applied to CDRC for help to mediate negotiations between the company and its financial creditors on loans amounting RM400mil.

LCL had defaulted on the loans because the interior fit-out firm was unable to collect payments for work done from clients in Dubai.

On March 3, LCL said CDRC had agreed to assist the company, provided that it could come out with a regularisation plan within six months.

“As the result of the withdrawal of Axis Global Capital Sdn Bhd as potential white knight for the proposed regularisation plan, CDRC has terminated LCL’s admission with effect from July 1 since LCL is unable to submit a revised plan for CDRC’s assessment,” LCL said yesterday.


- by thestar.com.my