THE Minority Shareholders Watch Group (MSWG) has raised concerns over Sentoria Group Bhd’s high borrowings of RM461 mil as of March 31, 2021 amid the group’s net loss which has widened to of -RM171 mil in its FY 3/2021 from -RM89 mil in its previous financial year.
To overcome the group’s financial difficulty, the property developer said it has applied to the Corporate Debt Restructuring Committee (CDRC) under the purview of Bank Negara Malaysia to mediate with its lenders to restructure or re-negotiate various financial facilities held by the group and certain subsidiary companies.
“What was the reason for the group having such high borrowings of RM461 mil? What are the chances that the CDRC will be able to get the lenders to restructure the borrowings?” enquired the shareholder activism group.
Pertinently, MSWG is also keen to know when Sentoria expects CDRC to revert with an answer on the restructuring of the group’s borrowings.
“What will be the contingency plan if CDRC cannot get the approval from its lenders to restructure the group’s borrowings?” it asked.
“What are the recommendations of the consulting firm engaged by the company to assist in the restructuring of the group’s debts and liabilities? Please provide the name of the consulting firm and the fees payable to the firm.”
Sentoria will stage its 22nd annual general meeting (AGM) virtually on Sept 8 (Wednesday) at 10.30am from V-cube Malaysia Sdn Bhd’s (provider of live streaming) office in KL Eco City, Kuala Lumpur.
Elsewhere, MSWG is also querying JOE Holding Bhd (formerly GPA Holdings Bhd) with regards to the latter’s RM25 mil rights issue investment in Pasukhas Group Bhd alongside with its substantial shareholding of 21.58% equity interest in Pasukhas.
(Note: JOE Holding’s stake in Pasukhas now stands at 16.96% following a disposal of 53.41 million shares or 4.62% stake on July 26).
“What was the hurdle rate adopted and approved by the board in evaluating the investment in Pasukhas?” asked the shareholder activism group.
“What is the expected minimum percentage of return on investment for the Pasukhas investment?”
Against the backdrop of Pasukhas being a loss-making company for the past three years up to Dec 31, 2020, MSWG is also curious to know as to how the automotive battery and component maker’s board is able to ensure that its investment is in the best interest of the company as well as how its shareholders’ interest can be safeguarded.
JOE Holding will stage its virtual AGM on Sept 8 (Wednesday) at 11am on the online meeting platform provided by Mlabs Research Sdn Bhd. – Sept 5, 2021
