KUALA LUMPUR: Practice Note 17 (PN17) company TH Heavy Engineering Bhd (THHE) today received shareholders approval to transfer its floating, production, storage and offloading (FPSO) job awarded by JX Nippon Oil & Gas Exploration (Malaysia) Ltd to Yinson Holdings Bhd.
The novation of the contract is part of the group’s scheme arrangement with its creditors to regularise its financial condition.
“The shareholders have given us 100% support. So our next phase is to complete the regularisation process, which involves the issuance of new shares subject to the Bursa approval,” THHE CEO Suhaimi Badrul Jamil told reporters after its EGM.
“We hope to be on track to regain back our footing and get out of PN17 as soon as possible,” he added.
The group recently said it will receive RM374 million cash as proceeds of the novation agreement, which some RM352.8 million earmarked as payment for scheme creditors.
The company has about three months to submit its regularisation plan to the relevant authorities for approval.
THHE closed unchanged at 9 sen today, with some 767,700 shares changing hands. Bursa Malaysia will have only one trading session today, as it closes for Chinese New Year.