Muhibah ... Nov12

It will meet the Official Receiver (OR) appointed by the court on 12 Nov 2012, together with the other contractors and creditors of the project, which may include CIMB Bank Bhd..

According to the group’s MD, Muhibbah wants to restructure the project, and willing to inject more money into it, as the group believes in the viability of Southern Johor as an oil and gas storage terminal alongside Singapore.

If it is required for Muhibbah to become a major shareholder of the project, it is willing to do that.

The meeting with the OR on 12 Nov 2012, the group hope that CIMB will listen to what the other creditors would want to say in regards to how best to save the APH project. The group is looking forward for a solution to be achieved and agreed by all the parties involved in the project.

Besides CIMB (which was owed rm1 billion by the promoter of the project), KIC Oil and Gas Sdn Bhd, Muhibbah was the second largest creditor with about rm407 million owed.

The group has made provisions of about rm160 million for the project in its balance sheets, with the remaining net additional impact of rm245 million.

However Muhibbah is still optimistic about the viability of the project, and wanted to salvage and add value to it. If a solution could be found and the project could be resumed, Muhibbah might not have to provide the additional rm245 million in its book at all.