KUALA LUMPUR (Aug 3): Khee San Bhd (KL:KHEESAN) said all of the company's outstanding debt to creditors has been settled, following the completion of its regularisation plan earlier this year.
In a bourse filing on Monday, the candy maker said it has “fully settled all outstanding obligations to its creditors, and all banking facilities have been discharged”.
“As such, there are currently no defaults in payment by the company as at the date of this announcement (Aug 3),” the company noted.
Khee San announced the completion of its regularisation plan in March this year.
The plan, which involved debt settlement via a scheme of arrangement, share capital reduction and rights issue, saw it settle RM72.49 million in debt.
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The company fell into Practice Note 17 in November 2021 after its wholly-owned unit, Khee San Food Industries Sdn Bhd, which accounted for over half of its total assets, was placed under judicial management following an application by Maybank Islamic Bhd.
The unit was embroiled in a legal battle with several banks over debts owed.
Khee San had a period of loss-making between FY2019 and FY2022. Since then, it has returned to profit.
For the financial year ended June 30, 2025 (FY2025), Khee San posted a net profit of RM1.78 million on a revenue of RM57.4 million.
In its most recently closed third quarter ended March 31, 2026 (3QFY2026), the company fell back into the red with a net loss of RM11.92 million, as compared to a net profit of RM102,000 in the same quarter a year earlier.
The loss, on revenue of RM14.12 million, came on RM14.44 million in one-off expenses, comprising the vesting of shares under its Employee Share Grant Scheme.
Shares of Khee San ended half a sen or 4.35% lower at 11 sen, valuing the company at RM129.41 million.