Scomi Energy unit defaults on RM55m bonds

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.

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.