Innovest restructure under way

  • Business
  • Thursday, 26 Jun 2003

INNOVEST Bhd, classified as a PN4 company, is working on plans to regularise its financial position through a restructuring scheme, said executive director Mat Hassan Esa.  

He said the group was in discussions with some strategic partners to venture into profit-generating businesses, especially in manufacturing, information and communications technology and property. 

The interested parties were expected to inject assets into the group, Hassan said. 

“They are parties that have their own business activities which generate sufficient income to carry KLSE main board companies,” Hassan said after the group’s AGM in Kuala Lumpur yesterday. 

He said the group had hoped the corporate exercise would take effect as soon as possible, however, it had yet to submit its proposal.  

Currently, the contributor to Innovest’s cashflow is its provision of management services to the Selayang complex. Innovest charges the tenants a service fee of 90 sen per sq ft. 

Hassan also said the company had put on hold any future plans until its financial position was regularised. 

“Our financial position is very restricted. We cannot get access to banking facilities, therefore, we cannot venture into other businesses,” he said. 

Innovest was reclassified a PN4 company last month. 

The group and the company had net liabilities of RM31.6mil and RM61mil respectively as at Dec 31, 2002. 

This indicates that Innovest may be unable to pay its liabilities as and when they fall due. 

The group posted a pre-tax loss of RM1.04mil on a turnover of RM1.26mil for its first quarter ended March 31, 2003. - Bernama 

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