Thursday, December 2, 2010

Baneng expects proposed debt revamp ready by 3Q2011

KUALA LUMPUR: BANENG HOLDINGS BHD [] expects its proposed restructuring scheme, including debt revamp to be completed by the third quarter of 2011.

The company said on Thursday, Dec 2 it had submitted applications on the proposed restructuring scheme to the relevant authorities on Nov 29.

It expects to get the approvals from all relevant authorities by February, 2011 and complete the proposed capital reCONSTRUCTION [] by mid-May.

Baneng expected to offer the warrant to entitled shareholders under the offer for sale by early July and the completion of the debt revamp by mid-July.

The company is an affected listed issuer under Practice Note 17 of the Listing Requirements

In the latest audited financial statements for the financial year ended Dec 31, 2009, without qualifying its opinion, the company's auditors, Messrs Ernst & Young had drawn the attention to Baneng and its subsidiaries' losses of about RM75.5 million during the FYE 31 December 2009.

As at Dec 31, 2009, the group's current liabilities exceeded its current assets by approximately RM38 million. In addition, the group has defaulted in the repayment obligations for bank borrowings during the said year.

These conditions indicated the existence of a material uncertainty which may cast a significant doubt on the ability of the Group to continue as a going concern.


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