KUALA LUMPUR (Dec 17): KNM Group Bhd (KL:KNM) said its German-based subsidiaries in the Borsig Group have secured a new credit facility of €60 million (RM280.4 million), enabling them to continue operations as usual.
In a filing with Bursa Malaysia on Tuesday, KNM said wholly-owned Borsig GmbH and Deutsche KNM GmbH, along with other companies within the Borsig Group, have signed the facility agreement with lender Landesbank Baden-Württemberg and other participating financial institutions.
This follows the expiration of a previous facility with IKB Deutsche Industriebank AG, which expired on Monday.
The new €60 million multi-currency guarantee facility comes with an option to increase the sum by a further €40 million. The borrowers under the agreement are Borsig GmbH, Borsig Process Heat Exchanger GmbH, Borsig ZM Compression GmbH, Borsig Membrane Technology GmbH, Borsig Service GmbH and Borsig ValveTech GmbH.
The facility has a tenure of three years, with two options for extensions of one year each, said KNM.
KNM had announced in May 2022 its intention to sell its entire stake in Borsig to GPR Siebzigste Verwaltungsgesellschaft mbH for €220.8 million. However, the deal fell through after KNM decided not to extend the deadline for additional time to fulfil the conditions precedent of the sale and purchase agreement.
While KNM had previously indicated plans to list Borsig, the current status of the listing remains unknown.
The group, which slipped into PN17 status in October 2022, has applied for a time extension until April 30, 2025 to submit its regularisation plan to Bursa Malaysia.
It has been loss-making since the financial year ended Dec 31, 2021. For the nine months ended Sept 30, 2024, KNM reported a net loss of RM156.38 million on revenue of RM715.68 million.
On Tuesday, shares of KNM fell 7.69% or half a sen to six sen, giving the group a market capitalisation of RM262.9 million.