RAM said in a statement that despite Prai Power's initial expectation of achieving its revised commercial operations date in mid-March 2003, it would now be delayed till end-April.
The financial loss to Prai Power has to-date been adequately mitigated by the provisions of the engineering, procurement and construction (EPC) contract.
Under the EPC contract, the contractor is liable to pay Prai Power liquidated damages of RM400,000 for each day of delay, which more than covers the company's own delay damages of RM200,000 per day to Tenaga Nasional Bhd
(TNB).
To cover potential timing differences, the company has a sufficient cash buffer of about RM57mil to cover delay damages for up to 130 days to TNB, as well as meet the next interest instalment due in August. – Bernama
's (VSI) RM100mil Al Murabahah commercial papers/medium-term notes programme (2001/2008). RAM said in a statement the rating action was mainly based on the sharp spike in VSI's debt level. Its total debt of RM326.95mil as of Jan 31 this year, translated into a net gearing ratio of 0.82, up from 0.53 three months previous.
Furthermore, the group's expected continuation with its plans to make higher value-added products in the next three quarters is expected to face teething problems in the initial stages.
Such problems may add pressure to its debt-servicing ability, RAM said. – Bernama
RAM said in a statement that despite Prai Power's initial expectation of achieving its revised commercial operations date in mid-March 2003, it would now be delayed till end-April.
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