KUALA LUMPUR (Oct 26): Sumatec Resources Bhd said today its Miri-based associate Semado Maritime Sdn Bhd has defaulted on repayment of RM165.21 million which was due to Bank Pembangunan Malaysia Bhd on Oct 18 and 19.
Semado had cited a delay in securing the completion of sale of the vessels for the default.
In a filing with Bursa Malaysia today, Sumatec said on Oct 11 and 12, Semado was served a writ of summons and warrant of arrest on its vessels Semua Mutiara and Semua Muhibbah, respectively, by Messrs Joseph & Partners — the solicitors acting for Bank Pembangunan.
Under the writ of summons, in return for the release of the vessels, Bank Pembangunan is claiming settlement of RM143.32 million (including RM100,000 in cost), or providing alternative security totalling RM165.21 million by way of either a first class bank guarantee or a letter of undertaking from a P&I Club, who is a member of the International Group of P&I Clubs. Semado has within seven days to do so.
The sum to be guaranteed of RM165.21 million comprises a principal amount of RM143.32 million, interest at 5% up to Oct 4, 2016 of RM21.5 million, and RM400,000 in cost.
To address the default, Sumatec said Semado is arranging for inspection of the vessels by potential buyers. It has also requested for extension of time from Bank Pembangunan, to complete the sale of the vessels.
"Pursuant to the corporate guarantee issued by (Sumatec) in 2008 to Bank Pembangunan for Semado, Sumatec is liable only if the value realised from the sale of the vessels is less than the total amount outstanding," it said.
"The realisable value of the vessels cannot be determined at this juncture, since the disposal is still pending," added Sumatec.
To date, Bank Pembangunan has not made a call on Sumatec’s corporate guarantee.
Nevertheless, Sumatec said the claim is not expected to have any significant impact on its business and operations.
"The financial impact to the group, if at all, is limited to the difference between the loan amount and the proceeds from the sale of the vessels," it added.
Semado’s default comes at a time when many other oil and gas (O&G) companies have defaulted on loans in the first half of this year, no thanks to low oil prices.
Early this month, Perisai Petroleum Teknologi Bhd found itself a Practice Note 17 company, after its wholly-owned subsidiary Perisai Capital (L) Inc defaulted in payment of the principal and interest on a S$125 million bond. Its bondholders had rejected the company’s request for a four-month extension on the maturity date in October.
Sumatec shares closed unchanged at 8 sen today, bringing a market capitalisation of RM309.3 million. Year to date, its share price has fallen 36% and down by 46.7%, compared with a year ago.