KUALA LUMPUR (June 14): Loss-making Brahim’s Holdings Bhd is required to submit a turnaround and expansion plan for its wholly-owned subsidiary Tamadam Industries Sdn Bhd (TISB) and MHC Trading (M) Sdn Bhd to OCBC Al-Amin Bank Bhd following payment default notice served to the group earlier.
In a bourse filing on Friday (June 11), the airline caterer said it is also required to submit monthly management accounts of TISB for the period ending May 31, 2021 to Sept 30, 2021.
To recap, previously on April 22, Brahim’s received a payment default notice from OCBC, which is represented by law firm Shook Lin & Bok, as the group was unable to fully settle the overdue rental sum of RM49.88 million as at April 1, 2021 under an Islamic financing facility granted by OCBC to Brahim’s, which has been contending with the impact of the Covid-19 pandemic.
The Practice Note 17 (PN17) company further said it has been given seven days to settle the RM49.88 million payment, failing which OCBC will have no choice but be compelled to demand that the amount be paid immediately.
Brahim’s — which has pledged its 100% stake in TISB to secure financing from OCBC — said the group is planning to dispose of and liquidate TISB to raise money, which will be used to partially settle the amount due to OCBC.
“Until Nov 1, 2021, Brahim’s shall make payments of RM200,000 commencing May 21, 2021 to July 21, 2021 and thereafter, monthly payments of RM300,000 commencing Aug 1, 2021 to Nov 1, 2021 to OCBC.
“The group is also required to submit its proposed settlement plan for the financing facilities provided by OCBC and proposed regularisation plan, and provide a formal valuation report of the property which is currently leased by TISB,” it said in a stock exchange filing on June 11.
Brahim’s also highlighted that the group and MHC are presently in discussions for a potential partnership in relation to the operations of TISB.
“The necessary announcements in relation to this potential partnership will be made in due course,” it said.
Brahim’s, which has been a PN17 entity since Feb 28, 2019, is an investment holding company with no ongoing operations.
For the financial year ended Dec 31, 2020 (FY20), Brahim’s net loss widened to RM153.21 million, from a net loss of RM14.03 million a year earlier, while revenue fell to RM82.39 million from RM308.7 million.
At the time of writing, shares in Brahim’s traded unchanged at 19.5 sen, giving it a market capitalization of RM46.08 million.
