Talam awaits nod for debt revamp

26/07/2007 The Star

KUALA LUMPUR: Talam Corp Bhd is awaiting Securities Commission (SC) approval for its proposed scheme to restructure RM830mil debt, said executive chairman Tan Sri Chan Ah Chye.

“We submitted the proposal in April and expect a decision within six months,” he told the media after Talam's AGM yesterday.

The company's banks had agreed to the proposed restructuring scheme, he said, adding that Talam's priority was to pare down a total of RM1.2bil in debts.

The massive restructuring will partly settle borrowings by the issuance of RM286mil redeemable convertible preference shares, up to RM397.3mil redeemable convertible secured loan stocks, and RM150mil in Islamic debt securities.

The appointment of IJM Construction Sdn Bhd to complete the group's stalled projects involving 10,000 units of sold residential properties is also part of the scheme.

The developer, currently under Practice Note 17, will also undertake a capital reduction to cancel 30 sen of the par value from each existing RM1 share and a share split under the proposed scheme.

Besides the debt restructuring scheme, Talam would strive to hive off land bank and assets at a “reasonable price” to pay off its debts, said Chan.

“We have lots of assets but are short of cash,” he said.

Chan said if the plans were successfully implemented, Talam's borrowings would eventually be reduced to about RM100mil.

“Hopefully, we can restore the company within 18 months and launch new projects,” he added.