Perwaja defaults on RM9.8mil coupon payment

(The Star) – Perwaja Holdings Bhd’s subsidiary, Perwaja Steel Sdn Bhd (PSSB), will not be able to fulfil the coupon payment of RM9.8mil for its RM280mil nominal value of 7% redeemable convertible unsecured loan stock which is due on March 26.

Perwaja said the reason for the default was because of the “inability to generate cash flow due to temporary cessation of business operations as a result of non-payment to utility providers, which in turn was caused by the slowdown of steel industry and decline in steel prices”.

“However, PSSB has finalised the settlement agreement with Petroliam Nasional Bhd and Tenaga Nasional Bhd, the two essential creditors of PSSB.

“As such, PSSB will be able to resume its business operations with the resumption of gas and electricity supply to its plant in Kemaman, Terengganu,” Perwaja said in a filing with Bursa Malaysia.

It added that PSSB together with its advisor were currently working towards finalising the debt-restructuring scheme to restructure its financial position and total indebtedness.