TH Heavy given two months to meet creditors on scheme of arrangement

During the quarter in review, the car distributor registered a net profit of RM32.82mil compared with RM19.43mil in the corresponding period last year. Consequently, its earnings per share jumped to 8.4 sen from 4.97 previously

KUALA LUMPUR: TH Heavy Engineering Bhd (THHE) and its subsidiaries have been ordered by the court to propose a scheme of arrangement to their secured and unsecured scheme creditors within 60 days at separate meetings.

The High Court also ordered them to give notice of the court convened meetings to their respective scheme creditors within seven days from the date of the order (Nov 15), THHE told Bursa Malaysia.

The company, which fabricates and maintains offshore oil and gas structures, said pending these meetings, the court extended the restraining orders against their creditors dated Aug 22, 2017, for a further three-month period from Nov 23, 2017.

THHE, its wholly-owned subsidiaries THHE Fabricators Sdn Bhd and O&G Works Sdn Bhd, and its 70%-owned THHE Offshore Services Sdn Bhd have all been served winding-up petitions from several companies for owing money.

The extended restraining orders were granted pending convening of the said meetings as well as to regularise THHE’s financial condition, said the company that triggered the Practice Note 17 criteria in April.

For the first six months of this year, THHE posted a loss attributable to shareholders of RM37.97mil, down from a loss of RM40.29mil a year earlier.

Last month THHE’s oil and gas fabrication unit THHE Fabricators was again barred by Petroliam Nasional Bhd from various job scopes due to its “non-performance” in a Sabah project.

THHE’s largest shareholder is Lembaga Tabung Haji, which holds 29.8%.

The counter closed unchanged at 10 sen on Wednesday with 4.93 million shares changing hands. Its share price has fallen 37.5% since the start of the year.