KUALA LUMPUR (Feb 26): KNM Group Bhd (KL:KNM) said trading in its shares will be suspended on Thursday, pending the release of a material announcement.

Bursa Malaysia Securities approved the one-day trading suspension from 9am to 5pm at the request of the company, KNM said in a filing on Wednesday.

In December last year, the Practice Note 17 (PN17) company announced that its wholly-owned German-based units Borsig GmbH and Deutsche KNM GmbH, along with other companies within the Borsig Group, had secured a new credit facility of €60 million (RM280.4 million), enabling them to continue operations as usual.

The cash-strapped company was first classified as a PN17 company in October 2022 after its current liabilities exceeded current assets, which came after its initial plans to sell Borsig GmbH to pare down debt faltered.

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 company is also currently exploring fresh options to sell its loss-making Italian subsidiary, FBM Hudson Italiana SpA, following a third failed attempt in June last year.

KNM has been loss-making since the financial year ended Dec 31, 2021. For the nine months ended Sept 30, 2024, the company reported a net loss of RM156.38 million on revenue of RM715.68 million.

In November last year, Bursa Malaysia Securities had granted KNM an extension of six months — up to April 30, 2025 — to submit its regularisation plan to the regulatory authorities.

Shares of KNM fell 8.3% or half a sen to 5.5 sen on Wednesday, giving the company a market capitalisation of RM222.52 million.