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State-owned Perak Corp now a PN17 firm

KUALA LUMPUR (Feb 12): Perak Corp Bhd — whose Movie Animation Park Studios (MAPS) theme park in Ipoh was closed last month until further notice — has lapsed into Practice Note 17 (PN17) status.

The state-owned firm told the stock exchange yesterday that it is now regarded a PN17 company, arising from the default in payment and its inability to declare solvency.

This comes after the group defaulted on another repayment of principal, this time in respect of the Musharakah Mutanaqisah Term Financing-i and Tawarruq Revolving Credit-i of up to RM100 million granted by Affin Islamic Bank Bhd.

Last October, Animation Theme Park Sdn Bhd — a 51%-owned subsidiary of PCB Development Sdn Bhd, which in turn is a wholly-owned unit of Perak Corp — defaulted in its repayment of principal for a syndicated term loan facility of up to RM280 million involving Affin Hwang Investment Bank Bhd, Affin Bank Bhd, Bank Pembangunan Malaysia Bhd and Malaysia Debt Ventures Bhd.

“After taking into consideration the group’s current cash flow position vis-à-vis its total debt obligations payable and the available cash flow, the company is unable to declare that it is solvent, pursuant to paragraph 9.19A(4) of the Listing Requirements.

“Arising from the default in payment and the company is unable to declare that it is solvent, the company has triggered the prescribed criteria under paragraph 2.1(f) of the PN 17 of the Listing Requirements,” it added.

Perak Corp said it is in the midst of developing a debt restructuring scheme to manage the debts of the group.

“The successful completion of the debt restructuring exercise will put the group on a firmer financial footing, while relieving its cash flow in the short to medium term,” it explained.

Shares in thinly-traded Perak Corp closed 1.5 sen up at 37.5 sen yesterday, bringing a market capitalisation of RM37.5 million.

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