KUALA LUMPUR: Shares in KNM Group Bhd
fell in early trade after the company defaulted three credit facilities totaling RM417.6mil.
The PN17 company declined 0.5 sen, or 10% to 4.5 sen at 9.13 am. It is the second most active counter on Bursa Malaysia with 47.62 million shares done.
KNM Group Bhd has defaulted on three credit facilities, two totalling US$23mil (RM101.4mil) and one of €68.5mil (RM316.2mil) on Dec 1, totaling RM417.6mil.
The company said the events of default may trigger cross defaults in other existing financial facilities.
Last week, KNM has decided not to go ahead with the sale of Borsig GmbH, after deciding not to extend the long-stop date beyond the Nov 30 deadline.
KNM said it will now consider other methods of monetising its investment in Borsig, either through the sale to other potential purchasers or through undertaking a potential listing exercise on any other primary stock exchanges.
The Borsig sale would have seen KNM make an estimated loss of RM490.55mil on the sale. KNM bought Borsig for RM1.65bil in 2008.
