KUALA LUMPUR: Shares in Daya Materials Bhd gained 50% in early trade Wednesday.
The counter jumped 50%, or 0.5 sen to 1.5 sen with 1.75 million shares exchanged hands.
On Tuesday, Daya Materials announced that it had defaulted in another of its payments, this time in relation to trade facilities from United Overseas Bank (Malaysia) Bhd (UOB).
The group’s subsidiary Daya CMT Sdn Bhd (DCMT) had defaulted on RM1.33 million, and now has to pay UOB RM2.81mil.
It said that the failure to pay the trade facilities was due to cash flow constraints that have lead to the group not being able to pay the facility in a timely manner.
This is not the first time the group has defaulted on this particular trade facility, as it had previously defaulted twice in April.
In addition, Daya Materials has been defaulting in credit facilities from other banks. The group had posted 18 announcements over its defaulting in payment to several banks from Feb 27 onwards.
These banks include RHB Bank Bhd, UOB, Malayan Banking Bhd , SME Bank Malaysia Bhd and MBSB Bank Bhd.
Earlier, RHB Bank Bhd has declined a request from Daya Materials’ subsidiary Daya Maxflo Sdn Bhd for more time to pay an outstanding sum of RM2.09mil.