KUALA LUMPUR: Corporate Debt Restructuring Committee (CDRC) said its decision to stop assisting in the mediation between troubled steel maker Kinsteel Bhd and its 28.39% associate Perwaja Holdings Bhd, and their lenders is due to the companies’ failure to come up with an acceptable proposed debt restructuring scheme.

“[This is] despite numerous extensions granted to them by the CDRC and the lenders,” CDRC chairman Datuk Seri Abdul Hamidy Hafiz said in a statement yesterday.

In separate filings with Bursa Malaysia on Monday, Kinsteel and Perwaja said the CDRC had notified the companies of their removal from the committee’s purview on Feb 7, 2017.

Established by Bank Negara Malaysia, the CDRC, on Sept 26, 2013, approved Kinsteel’s application for the committee to assist as mediator between the Kinsteel Group and its creditors.

Kinsteel shares closed unchanged at 4.5 sen yesterday, giving it a market capitalisation of RM46.87 million. Perwaja shares closed one sen or 7.69% higher at seven sen, valuing it at RM39.2 million.