Court Halts KNM’s Creditors Meeting: Report

In light of recent developments involving KNM Group Berhad, a statement from a party in the company says the High Court has halted a creditors’ meeting and appointed a professional liquidator to assess the scheme’s feasibility.

The statement from a group of shareholders highlights the concerns surrounding the initial proposal found in an Explanatory Statement by the board of directors. The move to seek a court order to stop the creditor’s meeting was prompted by what the group of shareholders say are the scheme’s poor quality, conjectural statements, and unverified information, which could have misled creditors.

Dato’ Loh Siew Cheang from Cheang and Ariff confirmed the court order in a message to Business News.

No Creditors Meeting

KNM issued an imperfect Explanatory Statement in haste, just six days after a hearing and this raises questions about the company’s preparedness and the quality of information presented, says the statement issued to the media today.

This has understandably led to creditors seeking an independent assessment of the situation, it adds.

On Oct 4th, KNM Group Bhd said its initiatives to reduce its debt of RM1.1 billion were on track and that its major creditors are supportive of its restructuring exercises to get back on its feet.

In a statement, the oil and gas services provider said it had received a support letter from an unnamed major creditor on its initial public offering (IPO) track for its prized asset, German machinery and equipment company Borsig.

On 8 September 2023, the CEO of KNM Ravindrasingham Balasingham made an appeal to the public shareholding to back the current Board saying at that time they “earned the confidence of the creditors and any plans to remove and replace [the current Board] could derail the process to extend the Restraining Order”.