KUALA LUMPUR (Oct 30): Energy infrastructure group Wasco Bhd (KL:WASCO) said its indirect wholly-owned subsidiary Wasco Coatings Germany GmbH (WCG) has filed for insolvency with the Stralsund, Germany Court, as it anticipates that an unreasonable claim may be made against it.

In a filing with Bursa Malaysia on Wednesday, Wasco said having considered the significant management time and cost that will be involved in refuting the claim, it was necessary to file for WCG insolvency. Wasco, however, did not provide further details on the matter.

WCG was principally involved in the provision of pipe coating and related services to the oil and gas industry but has been dormant since the end of 2023. WCG is a direct wholly-owned subsidiary of Wasco Coatings Europe BV, which in turn is
an indirect wholly-owned subsidiary of Wasco. WCG is not a major subsidiary of Wasco.

Wasco said there will be no operational and financial impact on the group because WCG is a dormant company. It added that any expected losses will be limited to WCG’s net tangible assets value of €75,000.

"There are no further steps to be taken by WCG and the company," said Wasco.

Wasco shares closed unchanged at RM1.10 on Wednesday, giving it a market capitalisation of RM847.5 million. The stock has risen 10% so far this year.