Malaysia's Perwaja holders agree to defer sukuk payment until November

By Marisa Wong

Madison, Wis., Sept. 24 - Malaysia's Perwaja Holdings Bhd. said that holders of wholly owned subsidiary Perwaja Steel Sdn. Bhd.'s Murabahah medium-term notes have granted the issuer additional time to make payments on the notes.

Noteholders approved the deferment at an extraordinary general meeting held on Monday.

Payment of the RM 50 million principal, which is due Sept. 25, is now deferred to Nov. 29.

Payment of RM 2.85 million of pre-contributions profit into a finance service reserve account has also been deferred to Nov. 29.

In consideration for consenting to the deferment, Perwaja Steel will pay holders accrued interest on the principal amount from Sept. 25 until the actual settlement date.

The company's board said it is proposing a restructuring exercise and is working with financial lenders and major creditors.

Perwaja is a steel producer and steel product manufacturer based in Kuala Lumpur.

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