KUALA LUMPUR, Barakah Offshore Petroleum Bhd was among the most active counters in Bursa Malaysia’s morning session today on bank loan default news.
At 11.23 am, Barakah Offshore Petroleum shares lost 2.5 sen or 35 per cent to 4.5 sen from yesterday’s closing of seven sen with 56.07 million shares traded.
In a filing to Bursa Malaysia on Tuesday, the company said its wholly-owned major subsidiary, Kota Laksamana 101 Ltd (KL101), had defaulted on its instalment payments to the Export-Import Bank of Malaysia Bhd (Exim Bank).
It said KL101 had received a notice of demand on May 17 for the outstanding US$2.7 million (approximately RM11.1 million) owing under a 2014 facility agreement.
The default may aggravate the current financial concerns of the company. The lack of financial support from financial institutions is expected to have a material adverse impact on the business and operations of Barakah Offshore Petroleum, it said.
It said the company would endeavour to continue its other remaining business operations, notwithstanding the default, and engage with lenders and suppliers for their continuous support.
Source: BERNAMA (News Agency)