KUALA LUMPUR (April 26): KNM Group Bhd said it is seeking court sanction for a new scheme of arrangement with its creditors. The PN17 group is also seeking a further extension of time to submit its regularisation plan.

In a bourse filing, KNM said the oil and gas (O&G) group and its wholly-owned unit KNM Process Systems Sdn Bhd filed an application on Friday to obtain the High Court’s nod for the new scheme of arrangement, and for a fresh restraining order against the scheme creditors.

Upon the filing of the application, an automatic moratorium has been granted to the group — for up to two months or until the court decides on the application, whichever is earlier — to stop any order that may be made for the winding up of the group.

In a separate filing, KNM said it has applied for a further extension of time of 12 months, until April 30, 2025, to submit the group’s regularisation plan to the relevant regulatory authorities.

On Jan 5, the group announced that Bursa Securities had approved its application for an extension of time up to Aug 30, 2024 to submit its regularisation plan.

The group fell into PN17 status in October 2022 as its current liabilities exceeded current assets, after a deal fell through to dispose of its German machinery manufacturer Borsig Gmbh to pare down its debt, some of which it missed payment as early as in November 2021.

KKM shares closed half a sen or 7.69% higher to seven sen, giving the group a market capitalisation of RM262.98 million. The stock has fallen 22.22% year to date.