YFG’s restraining order against creditors extended till next March
KUALA LUMPUR (Sept 20): Practice Note 17 (PN17) company YFG Bhd has secured an extension until March 18 next year from the court today for the restraining order it obtained against its creditors last year to facilitate the regularisation of its financial condition.
The restraining order, obtained in January last year, was originally scheduled to expire today.
In a filing with the stock exchange this evening, YFG said the High Court had today granted the extension for the firm to restrain any and all legal proceedings or actions taken against it or in respect of the company.
This includes YFG and two of its subsidiaries, namely YFG Engineering Sdn Bhd and YFG Trolka Sdn Bhd.
“The extended restraining order is to facilitate the group’s submission to Bursa Malaysia Securities Bhd, for its approval for the implementation of the proposed regularisation plan to regularise the group’s financial condition,” said YFG.
YFG, an electrical and mechanical engineering services provider, fell into PN17 two years ago after its auditors expressed an emphasis on the company’s and its subsidiaries’ ability to continue as a going concern, while shareholders’ equity shrank to less than 50% of its issued and paid-up capital.
It is set to submit a proposed regularisation plan by end-October this year after Bursa Securities granted it more time to do so, failing which it may be de-listed.
The company has been in the red for four consecutive quarters. In its latest third quarter ended June 30, 2017 (3QFY17), YFG registered a net loss of RM7.05 million, against a net profit of RM1 million a year ago, due to cost overrun from ongoing projects.
Meanwhile, quarterly revenue fell 31% year-on-year to RM13.90 million from RM20.18 million, as ongoing projects are progressing towards the scheduled end of contract.
[ The Edge markets]