KNM defaulted on loans totalling about RM416.8mil borrowed through three of its indirect subsidiaries following the failed sale of Borsig.
PETALING JAYA: Debt-laden KNM Group Bhd
announced yesterday it defaulted on its loans totalling about RM416.8mil borrowed through three of its indirect wholly owned subsidiaries following the failed sale of Borsig GmbH.
The subsidiaries in question are Peterborough Green Energy Ltd – which was granted a loan of �68.5mil (RM315.65mil) by Danos Ltd, as well as KNM Renewable Energy Sdn Bhd (KNMRE) and Splendid Investments Ltd (SIL), which received loans of US$13mil (RM57.17mil) and US$10mil (RM44mil) respectively from TransAsia Private Capital Ltd (TA).
The loan was watched over by security agent TA Private Capital Security Agent Ltd.
In a separate filing yesterday, KNM stated it had received an originating summons filed by TA Private Capital Security to enforce its rights to effect the transfer of 45% shares in KNM Process Systems Sdn Bhd that was charged by KNM as security for the US$10mil loan granted by TransAsia Private Capital to Splendid Investments.
KNM reported it had earlier agreed with the lenders Danos and TA that it would utilise part of the RM1.03bil proceeds expected to be raised from the proposed disposal of Borsig – which had fallen through last week – to repay the debts.
“The longstop date agreed in the share sale and purchase agreement regarding the proposed disposal had been extended various times and the last extension in principle was until Nov 30, 2022.
“On Dec 1, KNMG announced that the proposed disposal had not materialised as the relevant conditions precedent had not been fulfilled as of Nov 30,” it said in its filing with Bursa Malaysia yesterday, adding that as such, the loan repayment could not materalise.
