KUALA LUMPUR (July 12): KNM Group Bhd (KL:KNM) has been granted a second extension to submit its Practice Note 17 (PN17) regularisation plan from the earlier deadline of April 30, 2024.
The company now has until Oct 30, 2024 to submit its regularisation plan to the authorities, KNM's bourse filing showed.
The cash-strapped company had previously requested for a 12-month extension until April 30, 2025, but was given six months instead to finalise the PN17 regularisation plan.
“The extension of time is without prejudice to Bursa Securities' right to proceed to suspend the trading of the listed securities of the company and to de-list the company in the event the company fails to obtain the approval from any of the regulatory authorities necessary for the implementation of its regularisation plan,” the group said.
KNM was first classified as a PN17 company in October 2022 following its current liabilities exceeding current assets, which came after its initial plans to sell its German-based machinery and equipment unit, Borsig GmbH to pare down debt, faltered.
It is also currently exploring fresh options to sell its loss-making Italian subsidiary, FBM Hudson Italiana SpA (FBMHI), following a third failed attempt.
This came after the collapse of its deal to sell FBMHI, a manufacturer of heat and high-pressure equipment, to Milan-based BM Carpenterie Oil & Gas Srl (BMC) and Verona-based Officine Piccol SpA for €16.5 million (RM83.54 million). KNM said the initial agreement with these buyers expired on June 30.
Last month, KNM said it has obtained an interim restraining order from the Kuala Lumpur High Court, protecting it from legal actions by creditors until the disposal of its application for a three-month restraining order and a court-convened creditors’ meeting.
It said under the ad interim restraining order, no winding-up order or resolution can be passed against the company and no receiver or receiver and manager may be appointed over its assets.
The order also provides that no proceedings may be commenced or continued against the applicants, and no execution, distress or other legal process may be commenced, continued or levied against any of its properties unless given permission by the court.
As of March 31, 2024, KNM had total borrowings of RM2.57 billion, accumulated losses of some RM1.35 billion and total equity of RM410.77 million.
KNM’s share price fell by half a sen or 5.56% to 8.5 sen on Friday, valuing the company at RM324.8 million.
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