OTHERS MARINE & GENERAL BERHAD (FORMERLY KNOWN AS SILK HOLDINGS BERHAD) - ASSISTANCE TO MEDIATE BY THE CORPORATE DEBT RESTRUCTURING COMMITTEE OF BANK NEGARA MALAYSIA

MARINE & GENERAL BERHAD

Type Announcement
Subject OTHERS
Description
MARINE & GENERAL BERHAD (FORMERLY KNOWN AS SILK HOLDINGS BERHAD)
- ASSISTANCE TO MEDIATE BY THE CORPORATE DEBT RESTRUCTURING COMMITTEE OF BANK NEGARA MALAYSIA

The Board of Directors of Marine & General Berhad (formerly known as SILK Holdings Berhad) (M&G or the Company) wishes to announce that its operating subsidiary, Jasa Merin (Malaysia) Sdn Bhd (JMM) has received approval from the Corporate Debt Restructuring Committee (CDRC) of Bank Negara Malaysia for JMM’s application for assistance to mediate between JMM and some of its subsidiaries (the Applicant Company) with its financiers (Lenders).

This admission to CDRC is consistent with M&G’s strategy to streamline its operations and optimise its financial resources to focus and proactively enhance both its upstream and downstream marine logistics business pursuant to M&G’s disposal of its entire investment in Sistem Lingkaran-Lebuhraya Kajang Sdn Bhd (SILK).

The approval from CDRC in its letter dated 5 February 2018 (CDRC Approval Letter) is subject to the following conditions:

1. JMM is required to submit a Proposed Debt Restructuring Scheme within sixty (60) days from the date of the CDRC Approval Letter;

2. JMM’s admission to CDRC is limited to twelve (12) months or upon signing of a debt restructuring agreement, whichever is earlier; and

3. The Proposed Debt Restructuring Scheme must comply with the CDRC’s restructuring principles for JMM to continue to remain under the Informal Standstill Arrangement with the Lenders.

The Standstill Letter was issued by CDRC to the Lenders of the Applicant Company on 5 February 2018.

The CDRC, which is under the purview of Bank Negara Malaysia, will mediate between the Applicant Company and its Lenders to renegotiate their respective financing facilities on terms that can be sustained in the face of this challenging period for the oil and gas industry. The successful mediation will enable JMM to be better positioned in the upstream marine logistics segment and ensure its underlying viability going forward.

The announcement is dated 6 February 2018.






Announcement Info

Company Name MARINE & GENERAL BERHAD
Stock Name M&G
Date Announced 06 Feb 2018
Category General Announcement for PLC
Reference Number GA1-06022018-00048