KUALA LUMPUR: SCOMI ENERGY SERVICES BHD's (SESB) unit KMCOB Capital Bhd has defaulted in redeeming or repaying the Series E of the guaranteed serial bonds (KMCOB bond”) issued amounting to RM55mil.
It said on Friday the payment date being the maturity date for the redemption of Series E was on Saturday, which is a non-working day.
“Despite not being able to meet the principal payment, KMCOB will be paying the coupon on the Series E of the KMCOB bond, which will also fall due on the same date, ” it said.
SESB said to date, KMCOB had partially built up about RM22mil in the sinking fund and was short of about RM33mil to repay the Series E of KMCOB bond.
SESB has accepted the letter of offer dated Dec 10,2019 from MIDF Amanah Investment Bank Bhd (MIDF) to provide a bridging financing to repay Series E of the KMCOB Bond.
“However, there was insufficient time for SESB to fulfil the conditions precedent and security arrangement for the drawdown of the bridging financing before the payment date, ” it said.
SESB said it had taken measures to address the default.
It said KMCOB had submitted a formal request to TMF Trustee Malaysia Bhd, being the trustee of the holders of the KMCOB bonds on Dec 11 to seek a remedial period from the bondholders for the settlement of the Series E of KMCOB bond.
“SESB is expediting the fulfilment of the conditions precedent and security arrangement to facilitate the drawdown of the bridging financing and settlement of the Series E of KMCOB Bond within the remedial period.
It added the KMCOB default would give rise to an event of default by virtue of the cross default provision under the principal/financing documents for the FGI facility granted by Danajamin to KMCOB. The principal amount outstanding was RM105mil as of Nov 30.
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