FOR THE OLDEST PUBLIC LISTED COMPANY (PLC) IN BURSA WITH DEBT OF OVER RM300 MILLION

Client

A diversified public listed company, with its core operation in tin mining  

Products & Services

• Special administration services
• Debt restructuring services

Description of Project

Client

The Client is listed on the main board of Bursa Malaysia. It is one of the first PLC to be listed in Malaysia, with its core tin mining assets in Perak. Over the years, the PLC has diversified to property development, oil palm and rubber plantation and glove manufacturing.  

Background

The PLC suffered a financial crisis in early 2000s subsequent to a number of failed investment ventures. The debt owed by the PLC to a consortium of lenders amounted to over RM300 million at that time. The consortium of lenders has appointed receivers over the PLC, and our team members played key roles in the receivership team. 

Challenges & Expectations

The PLC was unable to sustain its high level of debt based on its assets & business profile. A critical review of the PLC’s business model had to be undertaken to arrest its cashflow deficit position and preserve the value of the company’s core assets.

Thereafter, the priority was to restructure the PLC’s existing debt based on the value to be extracted from its strategy moving forward.

Our Role on the Project

Scope of Services

Provision of special administration services, which comprised of operational review & strategy implementation. Provision of debt restructuring services, which involved the formulation of a workout proposal endorsed by all key stakeholders (lenders)

Solutions / Outcomes Delivered

Successfully completed the restructuring scheme of the PLC with implementation of the following corporate exercises over a period of 24 months :

• de-listing & transfer of its listing status to a successful bidder
• divestment of its license to mine to a leading integrated tin producer 
• non-core asset monetization exercises involving the PLC’s plantation assets, manufacturing facilities, real estates
• discontinuing the PLC’s non-viable business entities (such as glove manufacturing, investment holding, property development subsidiaries)
• Workforce (HR) restructuring which involved the retrenchment of over 200 employees 

Net cash generated from the corporate exercises amounted to over RM200 million, of which a large portion is utilized to settle the restructured debt.