KUALA LUMPUR: Boustead Heavy Industries Corporation Bhd (BHIC) has received shareholders' approval for the debt settlement amounting to RM417 million which will assist its financial recovery.
The proposed debt settlement was approved at the extraordinary general meeting, with 99.92 per cent shareholders voting in favour of all resolutions tabled.
The resolutions included the amendment of the company's constitution to facilitate the issuance of new conventional and Islamic redeemable convertible preference shares (RCPS) to the lenders and Boustead Holdings Bhd as part of the debt settlement.
The debt settlement will be made to Affin Bank Bhd, MBSB Bank Bhd, AmBank Islamic Bhd as well as to Boustead.
"With this approval, and subject to the completion of all conditions of the proposals, BHIC's shareholders' funds will increase from RM61 million to RM420 million, its net assets per share from 24 sen to 74 sen and its gearing ratio significantly reduced from 4.06 times to 0.02 times.
"The approval of the proposals by the esteemed shareholders marks a significant milestone for BHIC to strengthen its shareholders' funds and improve cashflow moving forward," it noted in a Bursa Malaysia filing.
BHIC had proposed to partially settle estimated outstanding amount of up to RM30 million owed to Affin Bank as of Dec 31.
It also plans to partially settle the estimated RM63.3 million and RM90 million owed to MBSB and AmIslamic Bank respectively as of Dec 31.
BHIC will fully settle its debt with Boustead which stood at RM234 million.