rights issue

 
 

Kinsteel granted more time to submit regularisation plan

PETALING JAYA: Kinsteel Bhd has been granted an extension until Dec 31, 2019 by Bursa Malaysia to submit a regularisation plan in order to lift its Practice Note 17 (PN17) status.

According to the group’s Bursa disclosure, it might face a possible delisting from the stock exchange in the event of failure to submit a regularisation plan or obtain approval for the implementation of said plans from the authorities.

Last week, Kinsteel unveiled its revamp plan, including a 70% share capital reduction from RM83 million to RM24.9 million.

The credit from the proposed capital reduction of RM58.1 million will be used to offset its accumulated losses, which stood at RM865 million as at June 30, 2019.

Kinsteel is also seeking to raise up to RM46.6 million via a special issue of new shares with free warrants to selected placees; and a rights issue of new shares with free warrants to existing shareholders.

In addition, the group proposed a disposal of five parcels of industrial land for RM140 million.

Kinsteel also proposed a settlement of RM159.7 million inter-company debt owed by Perfect Channel Sdn Bhd, as well as a proposed scheme of arrangement and compromise with the creditors of Kinsteel involving total liabilities of RM1.68 billion as at June 30, 2017.

The group was first affected by the PN17 status in October 2016, after its auditor expressed a disclaimer of opinion in its audited financial statements for FY16, when its current liabilities exceeded current assets.


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Kinsteel proposes capital reduction, raises up to RM46.6m

PETALING JAYA: Ailing Kinsteel Bhd has announced a slew of corporate exercises for its regularisation plan, including a capital reduction and fundraising of up to RM46.6 million.

The Practice Note 17 (PN 17) company told Bursa Malaysia that it proposes a share capital reduction of 70% from RM83 million to RM24.9 million and the consolidation of every three shares into one share.

The credit from the proposed capital reduction of RM58.1 million will be used to offset its accumulated losses, which stood at RM865 million as at June 30, 2019.

There will be a proposed fundraising of up to RM46.6 million via a special issue of new Kinsteel shares with free warrants (RM35 million) to selected placees including managing director Tan Sri Pheng Yin Huah and Kin Kee Holdings Sdn Bhd; as well as a rights issue of new Kinsteel shares with free warrants (RM11.6 million) to existing shareholders.

The rights issue will entail the issuance of 115.73 million rights shares together with 57.87 million free warrants on the basis of one rights share for every three Kinsteel shares held together with one warrant for every two rights shares subscribed.

Kinsteel also proposes the disposal of five parcels of industrial land with buildings by its subsidiary Perfect Channel Sdn Bhd (PCSB) to SDM Specialty Chemicals Sdn Bhd and Konsortia Etiqa Sdn Bhd for RM140 million.

In addition, Kinsteel and PCSB propose to undertake a debt settlement arrangement for the inter-company debt owed by PCSB to Kinsteel amounting to RM159.7 million as at June 30, 2019.

Under the debt settlement arrangement, PCSB will pay RM47.5 million to Kinsteel from the disposal proceeds and the transfer by PCSB of its 99.99% stake in Kinsteel and Perfect Wiremakers Sdn Bhd to Kinsteel for RM10 million, to be offset against the inter-company debt owed by PCSB to Kinsteel.

Upon the settlement, there will be a debt waiver of the remaining balance of RM102.2 million. Kinsteel also proposes a scheme of arrangement and compromise with its creditors involving total liabilities of RM1.68 billion as at June 30, 2017.

Kinsteel slipped into the PN 17 status on October 26, 2016 after its auditor Messrs Crowe Horwath expressed a disclaimer opinion in its financial statements for the financial year ended June 30, 2016.

Trading in Kinsteel shares has been suspended since January 5, 2018.


Kinsteel proposes capital reduction, raises up to RM46.6m

PETALING JAYA: Ailing Kinsteel Bhd has announced a slew of corporate exercises for its regularisation plan, including a capital reduction and fundraising of up to RM46.6 million.

The Practice Note 17 (PN 17) company told Bursa Malaysia that it proposes a share capital reduction of 70% from RM83 million to RM24.9 million and the consolidation of every three shares into one share.

The credit from the proposed capital reduction of RM58.1 million will be used to offset its accumulated losses, which stood at RM865 million as at June 30, 2019.

There will be a proposed fundraising of up to RM46.6 million via a special issue of new Kinsteel shares with free warrants (RM35 million) to selected placees including managing director Tan Sri Pheng Yin Huah and Kin Kee Holdings Sdn Bhd; as well as a rights issue of new Kinsteel shares with free warrants (RM11.6 million) to existing shareholders.

The rights issue will entail the issuance of 115.73 million rights shares together with 57.87 million free warrants on the basis of one rights share for every three Kinsteel shares held together with one warrant for every two rights shares subscribed.

Kinsteel also proposes the disposal of five parcels of industrial land with buildings by its subsidiary Perfect Channel Sdn Bhd (PCSB) to SDM Specialty Chemicals Sdn Bhd and Konsortia Etiqa Sdn Bhd for RM140 million.

In addition, Kinsteel and PCSB propose to undertake a debt settlement arrangement for the inter-company debt owed by PCSB to Kinsteel amounting to RM159.7 million as at June 30, 2019.

Under the debt settlement arrangement, PCSB will pay RM47.5 million to Kinsteel from the disposal proceeds and the transfer by PCSB of its 99.99% stake in Kinsteel and Perfect Wiremakers Sdn Bhd to Kinsteel for RM10 million, to be offset against the inter-company debt owed by PCSB to Kinsteel.

Upon the settlement, there will be a debt waiver of the remaining balance of RM102.2 million. Kinsteel also proposes a scheme of arrangement and compromise with its creditors involving total liabilities of RM1.68 billion as at June 30, 2017.

Kinsteel slipped into the PN 17 status on October 26, 2016 after its auditor Messrs Crowe Horwath expressed a disclaimer opinion in its financial statements for the financial year ended June 30, 2016.

Trading in Kinsteel shares has been suspended since January 5, 2018.


Maxwell inks MoA with shoe player

PETALING JAYA: Sports shoes manufacturer Maxwell International Holdings Bhd has entered into a memorandum of agreement (MoA) with one of the three shoe players it previously negotiated with for its restructuring plan.

Following the termination of MoA with Mohd Faizol Abdul Karim, NTH Global Sdn Bhd and Opera Marketing Sdn Bhd yesterday as the parties were unable to come to agreement on material terms, Maxwell said it entered into an MoA with Mohd Faizol today.

Mohd Faizol through his wholly owned Persada Enterprise is the owner of Emmett, a custom and fashion shoes brand based in Kuala Lumpur.

Maxwell and Mohd Faizol intend to discuss on a proposed regularisation plan which will entail the proposed investment and subscription of new shares worth RM40 million by Mohd Faizol or a nominated fund by him; a proposed rights issue of shares by Maxwell and/or a proposed disposal of non-productive and inactive business operation of Maxwell in order to raise cash for settlement of creditors and/or future business

operation.

“The MoA provides Maxwell with an opportunity to venture into a new sustainable and profitable business, which is expected to facilitate a comprehensive regularisation plan to uplift Maxwell from being an affected listed issuer under Practice Note 17 of the Main Market Listing Requirements,“ Maxwell said in a stock exchange filing, adding that it would also provide the shareholders of the company an opportunity to participate in a sustainable and profitable business in the future.


Maxwell’s regularisation plan hits a snag

PETALING JAYA: Sports shoes manufacturer Maxwell International Holdings Bhd’s restructuring plan has hit a snag following the termination of its memorandum of agreement (MoA) with shoe players today.

Maxwell had said that the MoA was an opportunity for the group to venture into a new sustainable and profitable business to facilitate a comprehensive regularisation plan to uplift it from being an affected listed issuer under Practice Note 17.

It told Bursa Malaysia that the MoA was terminated as the parties involved were unable to come to agreement on material terms.

The MoA was signed with Mohd Faizol Abdul Karim, NTH Global Sdn Bhd and Opera Marketing Sdn Bhd (OMSB).

The proposed regularisation plan entailed the proposed investment and subscription of new shares worth RM40 million by Mohd Faizol or a nominated fund by him; the proposed rights issue of shares by Maxwell; the proposed execution of business co-operation/business development agreement between NTH and Maxwell.

It also involved the proposed execution of business co-operation/business development agreement/merger between OMSB and its companies and Maxwell; and the proposed disposal of non-productive and inactive business operation of Maxwell in order to raise cash for settlement of creditors and/or future business operation.

Mohd Faizol through his wholly owned Persada Enterprise is the owner of Emmett, a custom and fashion shoes brand based in Kuala Lumpur.

NTH is in the business of manufacturing and trading of shoes. NTH currently holds the official trademark Nottingheels which has been registered as the official trademark in Malaysia, China, Europe, and the US.

OMSB is the operator of fashion shoes shop chain stores, marketing the same under the brand name and trademark of Opera.


Maxwell’s regularisation plan hits a snag

PETALING JAYA: Sports shoes manufacturer Maxwell International Holdings Bhd’s restructuring plan has hit a snag following the termination of its memorandum of agreement (MoA) with shoe players today.

Maxwell had said that the MoA was an opportunity for the group to venture into a new sustainable and profitable business to facilitate a comprehensive regularisation plan to uplift it from being an affected listed issuer under Practice Note 17.

It told Bursa Malaysia that the MoA was terminated as the parties involved were unable to come to agreement on material terms.

The MoA was signed with Mohd Faizol Abdul Karim, NTH Global Sdn Bhd and Opera Marketing Sdn Bhd (OMSB).

The proposed regularisation plan entailed the proposed investment and subscription of new shares worth RM40 million by Mohd Faizol or a nominated fund by him; the proposed rights issue of shares by Maxwell; the proposed execution of business co-operation/business development agreement between NTH and Maxwell.

It also involved the proposed execution of business co-operation/business development agreement/merger between OMSB and its companies and Maxwell; and the proposed disposal of non-productive and inactive business operation of Maxwell in order to raise cash for settlement of creditors and/or future business operation.

Mohd Faizol through his wholly owned Persada Enterprise is the owner of Emmett, a custom and fashion shoes brand based in Kuala Lumpur.

NTH is in the business of manufacturing and trading of shoes. NTH currently holds the official trademark Nottingheels which has been registered as the official trademark in Malaysia, China, Europe, and the US.

OMSB is the operator of fashion shoes shop chain stores, marketing the same under the brand name and trademark of Opera.


Maxwell’s regularisation plan hits a snag

PETALING JAYA: Sports shoes manufacturer Maxwell International Holdings Bhd’s restructuring plan has hit a snag following the termination of its memorandum of agreement (MoA) with shoe players today.

Maxwell had said that the MoA was an opportunity for the group to venture into a new sustainable and profitable business to facilitate a comprehensive regularisation plan to uplift it from being an affected listed issuer under Practice Note 17.

It told Bursa Malaysia that the MoA was terminated as the parties involved were unable to come to agreement on material terms.

The MoA was signed with Mohd Faizol Abdul Karim, NTH Global Sdn Bhd and Opera Marketing Sdn Bhd (OMSB).

The proposed regularisation plan entailed the proposed investment and subscription of new shares worth RM40 million by Mohd Faizol or a nominated fund by him; the proposed rights issue of shares by Maxwell; the proposed execution of business co-operation/business development agreement between NTH and Maxwell.

It also involved the proposed execution of business co-operation/business development agreement/merger between OMSB and its companies and Maxwell; and the proposed disposal of non-productive and inactive business operation of Maxwell in order to raise cash for settlement of creditors and/or future business operation.

Mohd Faizol through his wholly owned Persada Enterprise is the owner of Emmett, a custom and fashion shoes brand based in Kuala Lumpur.

NTH is in the business of manufacturing and trading of shoes. NTH currently holds the official trademark Nottingheels which has been registered as the official trademark in Malaysia, China, Europe, and the US.

OMSB is the operator of fashion shoes shop chain stores, marketing the same under the brand name and trademark of Opera.


Lack of G7, IMF support seen dimming impact of US move on China’s yuan

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