KUALA LUMPUR (Oct 17): Alam Maritim Resources Bhd said it has submitted an application to Bursa Malaysia Securities Bhd for an extension of time to submit a regularisation plan to address its Practice Note 17 (PN17) status.

The offshore support vessel (OSV) operator, which also focuses on offshore installation and construction (OIC), fell into PN17 status on Oct 31, 2022, after its external auditors expressed a disclaimer of opinion in its financial statement for the six-month period ended June 30, 2022.

The initial deadline for Alam Maritim to submit its regularisation plan is by end of this month.

The group had a restraining order against its creditors, and extension of time up until Oct 11, 2023 for leave to summon meetings of the creditors in relation to its scheme of arrangement.

As at end-June 2023, Alam Maritim had negative total equity of RM58.14 million, down from RM72.79 million twelve months prior at end-June 2022.

It had short- and long-term borrowings of RM109.67 million and RM2.7 million respectively, against cash and bank balances of RM51.23 million, its latest financial statement showed.

According to its annual report, Alam Maritim is undergoing management structural reformation which includes the reduction of its fleet to 16 vessels, from 31 as at end-October 2022.

It also tapped into the Corporate Debt Restructuring Committee (CDRC) for financial and corporate restructuring, before it was discharged on Feb 24 this year.

Subsequently, the appointment of its financial adviser Sage 3 Sdn Bhd to assist in a proposed scheme of arrangement was terminated on Feb 28, and Alam Maritim appointed BDO Capital Consultants Sdn Bhd as its new financial adviser in March.

In the 12 months ended June 30, 2023 (FY2023), Alam Maritim booked a net profit of RM16.53 million, on a revenue of RM299.13 million, mainly due to higher share of profits from a joint venture and reversal of impairment loss in trade and other receivables.

As at Sept 30, 2022, Alam Maritim’s largest shareholder is its group managing director and group CEO Datuk Azmi Ahmad, with 0.16% direct and 21.58% indirect stake in the company.

Shares of Alam Maritim settled unchanged at three sen apiece, giving it a market capitalisation of RM45.95 million.