JERASIA : PN17 issue with loan repayment

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KUALA LUMPUR (Feb 9): PN17 company Jerasia Capital Bhd (JCB) said three of its wholly-owned subsidiaries have defaulted in their repayment of financing facilities totalling RM74.62 million. The apparel manufacturer and fashion retailer said Canteran Apparel Sdn Bhd (CASB), Jerasia Fashion Sdn Bhd (JFSB) and Jerasia Apparel Sdn Bhd (JASB) have defaulted on the repayment of principal and interest on Tuesday (Feb 8). JCB is the corporate guarantor for the financing facilities granted by United Overseas Bank (Malaysia) Bhd (UOB), the group said in a Bursa Malaysia filing. It added: “JCB and its subsidiaries’ retail and manufacturing segments in Malaysia have been operating under adverse financial and operational conditions since the Covid-19 pandemic. “Due to the prolonged different phases of Movement Control Order, coupled with the temporary closure of stores, the group’s overall sales have plummeted and it was unable to generate sufficient revenue to meet its repayment requirements.” JCB said the group, together with its solicitors, are working towards engaging with UOB to resolve a debt settlement arrangement. “In the longer term, a satisfactory restructuring of the group’s financial arrangement through a regularisation plan will be implemented to comprehensively address the company’s current PN17 status,” it added. On Jan 21, Jerasia said CASB had defaulted on its repayment of principal and interest in financing facilities worth RM26.395 million. A week prior, JFSB and JASB had defaulted on the repayment of principal and interest in two financing facilities worth RM57.05 million granted by HSBC Bank Malaysia Bhd. Shares in Jerasia ended five sen or 6.3% lower at 7.5 sen on Wednesday (Feb 9), valuing the group at RM5.77 million.

Source: The Edge Malaysia