Source: The Edge
Debt-laden Kinsteel Bhd, whose shares have been suspended from trading on Bursa Malaysia, said it has appointed Messrs Ernst & Young as its liquidator after being served a notice to do so last Tuesday, said the steel manufacturer in a filing with Bursa Malaysia yesterday.
The liquidator who was appointed on Jan 22 would take into custody or under his control all the property belonging to Kinsteel including cash at its bank or registered trademarks, intellectual property or patents.
Kinsteel’s balance sheet as at June 30, 2017, shows its property, plant and equipment stood at RM1.03 billion, while its inventories were at RM111.1 million. The company’s accumulated losses ballooned to RM479.3 million.
However, the company’s directors have yet to handover control of the company’s books, records and assets to the liquidator, according to the filing.
The notice follows the granting of a winding-up order by the Kuantan High Court on Jan 22 after Kinsteel and its wholly-owned Kin Kee Marketing Sdn Bhd failed to settle an outstanding payment of RM20.07 million, including interest and costs, to Knusford Marketing Sdn Bhd.
The sum was for the failure of delivering steel bars in the agreed quantity Knusford had paid for.
Kinsteel is appealing the winding-up order. The next court hearing is on March 8.
“The financial and operational impact of the winding-up proceedings on the company is that it would be wound up and dissolved. At this moment, Kinsteel is unable to ascertain the extent of the effect of the winding-up of the company on the group. The company will provide updates on this matter in due course,” it said.