A GROUP of planters and stakeholders in the East West One Group (EWOG) planter’s schemes has urgently called on Pacific Trustees Bhd to release the necessary funds for the company’s approved Rehabilitation and Restructuring (R&R) exercise.
The majority of EWOG’s investors who are represented by Thirunavukarasu Illamurugan, Yong Chin Koi and K. Mahadevan are concerned that the continued withholding of these funds by Pacific Trustees could cause further damage to the company’s financial health leading to potentially irreversible losses.
Despite the overwhelming support for the R&R plan from planters and stakeholders at EWOG’s Aug 12 planters’ meeting, critical rehabilitation work on EWOG’s plantation assets remains stalled due to this delay.
For over a year, the plantation palms have relied solely on natural soil fertility with no structured fertilisation or agronomic practices.
Henceforth, prompt initiation of the R&R programme is essential to restore the plantation’s productivity, leveraging enhanced agronomic practices and inputs to increase fresh fruit bunch (FFB) production.
With crude palm oil (CPO) prices having climbed above RM5,100/metric tonne (as of Nov 11) – with high prices projected to hold through 2025 – EWOG has a unique window to capitalise on these favourable market conditions.
After all, proceeds from FFB sales could also partially offset on-going rehabilitation costs, thus creating a sustainable pathway to recovery.
“Every day of delay further impacts our ability to restore the plantation and diminishes potential returns for all investors,” lamented Thirunavukarasu. “These funds, specifically held in trust for the plantation’s rehabilitation, need to be released without further delay.”
According to a recent court filing by East West Horizon Plantation Bhd, the management continues to face challenges due to Pacific Trustees’ reluctance to finalise the necessary trust deeds despite ongoing efforts from EWOG’s management and legal team.
This impasse is preventing the release of funds crucial for the R&R efforts, thus posing increased risks to the plantation assets and investor returns.
“A swift resolution is essential to launch the rehabilitation efforts and generate returns for all stakeholders,” stressed the investors’ representatives. “It’s time to move past the standstill and allow the EWOG group to implement the R&R plan for the benefit of all involved.” – Nov 12, 2024
