PETALING JAYA: Embattled Kinsteel Group Bhd has proposed an extensive regularisation exercise to extricate itself from its debt by asking the financial institutions and holders of corporate guarantees to take a massive haircut of its RM1.68bil in liabilities.
Kinsteel, a Practice Note 17 (PN 17) company which is currently in liquidation, had proposed these creditors accept a proposed debt waiver amounting to RM1.6bil, representing the balance 95.5% of the scheme liabilities as at the cut-off date of June 30,2017. Financial institutions are owed RM815.20mil or 48.5% of the RM1.68bil in liabilities while non-financial institutions and corporate guarantee holders are owed RM865.60mil or 51.5%. An analyst said the haircut was “a bit excessive” and may not be acceptable to the financial institutions.
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