PETALING JAYA: TH Heavy Engineering Bhd (THHE) and its subsidiaries have been ordered by the court to propose a scheme of arrangement to their secured and unsecured scheme creditors within 60 days at separate meetings.
The High Court also ordered them to give notice of the court convened meetings to their respective scheme creditors within seven days from the date of the order (Nov 15), THHE said yesterday in a filing with Bursa Malaysia.
The company, which fabricates and maintains offshore oil and gas (O&G) structures, said pending these meetings, the court had extended the restraining orders against their creditors dated Aug 22, 2017, for a further three-month period from Nov 23, 2017.
THHE, its wholly-owned subsidiaries THHE Fabricators Sdn Bhd and O&G Works Sdn Bhd, and its 70%-owned THHE Offshore Services Sdn Bhd have all been served winding-up petitions from several companies for owing money.
The extended restraining orders were granted pending convening of the said meetings, as well as to regularise THHE’s financial condition, said the company that had triggered the Practice Note 17 criteria in April.
For the first six months of this year, THHE posted a loss attributable to shareholders of RM37.97mil, down from a loss of RM40.29mil a year earlier.
Last month, THHE’s O&G fabrication unit THHE Fabricators was again barred by Petroliam Nasional Bhd from various job scopes due to its “non-performance” in a Sabah project.
The counter closed unchanged at 10 sen yesterday with 4.93 million shares changing hands. Its share price has fallen 37.5% since the start of the year.