KUALA LUMPUR (May 21): Practice Note 17 (PN17) energy and utilities construction outfit Reneuco Bhd (KL:RENEUCO) is seeking a court order to facilitate the restructuring of its debt.

Reneuco said the company, together with six of its subsidiaries, filed an application at the High Court on Tuesday for an order “for a compromise or arrangement with their creditors for the purpose of formulating and proposing a scheme of arrangement”.

The scheme of arrangement is to be part of the company’s regularisation plan, necessary for its PN17 exit and restoring its financial stability, Reneuco noted in the bourse filing on Wednesday.  

The company is also seeking a restraining order to prevent legal action being taken against it “to provide the company with the necessary breathing space to finalise and present its regularisation plan without the disruption of creditor actions that could jeopardise its restructuring efforts”.

Details of the scheme of arrangement will be set out later in an explanatory statement that will contain details on the revival and rehabilitation of the company and its six units, said Reneuco.

The scheme of arrangement will require 75% of the total value of scheme creditors approving it at a court-convened creditors’ meeting for it to be enforceable and binding on all scheme creditors.

As at end-December 2024, Reneuco had cash and bank balances of RM10.03 million, while total borrowings amounted to RM292.09 million.

Reneuco fell into PN17 status in February 2024 after its auditors issued a disclaimer of opinion on the company's unaudited consolidated financial statements for the period ended Sept 30, 2023.

Earlier this month, Reneuco was hit with a winding-up petition filed by SIRIM Bhd over a RM3.14 million sum linked to a shareholders' agreement signed in 2021, and a corporate guarantee issued in 2022.  

Reneuco had in 2021 acquired a 70% stake in Granulabs (M) Sdn Bhd, a company then wholly owned by SIRIM’s unit, SIRIM Tech Ventures Sdn Bhd.

Under the shareholders' agreement, Reneuco agreed to be responsible for RM5.19 million in repayment of advances owed to SIRIM plus interest. The RM3.14 million demanded via the winding-up petition represents the outstanding advances to be repaid.  
 
Shares in Reneuco ended unchanged at four sen, valuing the company at RM45.7 million.