FTSE Bursa Malaysia KLCI (^KLSE)

RGB International Berhad, has been served with a winding-up petition by RHB Bank Bhd

KUALA LUMPUR: RGB International Berhad, has been served with a winding-up petition by RHB Bank Bhd, demanding repayment of debt totalling RM218.16 million.

The case management is fixed for today, RGB International Berhad said in a stock exchange filing yesterday. “The company will be seeking legal advice on the above and will make further announcement in due course,” it added.

The debt-laden company’s balance sheet shows its main assets was worth RM211.8 million and current assets held for sales that were worth RM256 million as at Sept 30, 2020. Its net asset per share stood at 15 sen per share.

RGB International Berhad, which has accumulated losses of RM27.07 million, has been wanting to sell part of Wisma MPL that it bought from tycoon Tan Sri Quek Leng Chan to raise fresh funds to revive its financial health. Unfortunately, the company has yet to find a buyer for the office building located in the ‘Golden Triangle’ along Jalan Raja Chulan. It is not easy to find a buyer mainly because it is a strata-titled office block.

The company is facing a cash-flow problem. It had a negative cash flow of RM92.1 million as at Sept 30, 2020.

On June 14, 2020, RGB International Berhad had received a notice of statutory demand from RHB Bank, seeking the repayment of the debt or risk winding-up petition proceedings against the company.

The sum comprises RM43.64 million in revolving credit facilities, and two overdraft facilities amounting to RM74.52 million as at June 8, 2020.

The bank is also demanding for interest to be calculated at 3.5% per annum, plus the base lending rate on monthly rest from June 9, 2020 onwards, until the date of full settlement.

Additionally, it is seeking an interest of 3% per annum on the principal sum of RM25.7 million, plus the cost of fund, to be calculated from June 9, 2020 until the date of full settlement.

Its external auditors expressed a disclaimer opinion on its latest audited accounts in December 2020.

The company’s shares were last traded at 14 sen, giving it a market capitalisation of RM224 million.