But Kanger-WA is expiring real soon ..

What I can see from the announcement is that:

1. there is additional investment from Tan Sri Nik Awang @ Wan Azmi Bin Wan Hamzah and Gelombang Global Sdn Bhd of RM21million each totaling RM42million; and

2. Tan Sri Nik Awang @ Wan Azmi Bin Wan Hamzah and Gelombang Global Sdn Bhd will pay the RM42million in advance as loan subject to interest to replace the loan of RM20million by Sharp Ascend Ltd, hence there will be an additional RM22million cash flow.

No one will want to invest into a dead company. That means Scomi is alive!

Come on guys be sensible. I have never heard a company suspended to announce PN17 haha. What a joke. There is for sure about new investors as reported by the edge and the star. Look at Scomies which is surging, it can’t go wrong. Perhaps there are something more than that, ie more than one announcement/good news.

Honestly yesterday's announcement was nothing surprising as it was consequential to the Settlement Agreement dated 4 April 2019 ("SA"). To me the good implication is that: the conditions precedent of the SA are fulfilled without doubt and the RM181 million for the repair of 5 trains are in the pocket which will affect the coming quarter report, not taking into account the current RM122 million which is considered a new project in Scomi order book that we have not heard for years. The total is thus RM303 million. Again this RM303 million also did not take into account the RM25 million loan by SAL and Sammy Tse to settle the Maybank loan. The benefit is not only salvage Scomi from defaulting but to cut interest, on the basis that Sammy's advance of RM3 million is interest free and my believe that the interest imposed by SAL on the RM23 million will be lesser than Maybank's interest. In short Scomi is rescued. It all started since 4 April 2019. But people still hate the consolidation as we know its problems. I guess Scomi can only move steadily and positively after the consolidation takes place which is expected to be completed within 3 months I guess.

They talked about the IP rights still with SRB, the relevant paragraphs are reproduced as follows:

"Receivership locks Scomi out of Scomi Rail

Scomi entered into memorandums of deposit with Maybank on Sept 4, 2014, and Oct 30, 2015, whereby the group pledged 206.04 million shares it holds in SESB as security for the loan facilities granted to Scomi Rail.

Scomi Rail defaulted on the loan of RM201.9 million on Jan 25. After Scomi, as the holding company, also failed to pay a sum of RM113.96 million on Feb 8, Maybank applied for a winding-up order against the company, which was granted by the Shah Alam High Court on May 6.

While a settlement has been reached between Scomi and Maybank, the bank’s legal charges over Scomi Rail’s properties, including its intellectual properties, remain. This raises the question of what the future of Scomi’s transport solutions business without the technologies in Scomi Rail will be.

The receivership can be lifted, provided Scomi manages to convince Maybank that the restructuring plan is solid without selling the intellectual properties of Scomi Rail.

Whether it is successful remains to be seen as Datuk Adam Primus Abdullah, the receiver and manager for the properties, is tasked to recover the defaulted amount for Maybank as quickly as possible."

I raised doubt about the following paragraph in particular:

"While a settlement has been reached between Scomi and Maybank, the bank’s legal charges over Scomi Rail’s properties, including its intellectual properties, remain. This raises the question of what the future of Scomi’s transport solutions business without the technologies in Scomi Rail will be."

Where SRB is the owner of IPs, the use of IP is SRB's business which will go on anyway. Until the day the Receiver intends to sell off the IPs, it must be done by way of open tender too. That will mean SGB too can bid for the IPs. Even the IPs are sold to 3rd party despite the practical difficulties if not impossible as having been admitted in the same report too, the value of IPs is to make profit by using them to do business. In short, that does not justify the statement of possible future of Scomi's transport solutions business without the technologies in SRB. The Writer was making presumption that the IPs in SRB will be sold to 3rd party who will refuse in total to allow Scomi to use them at all, which is quite impossible.

I think the report creates unnecessary worry towards the IPs issues with SRB against SGB.

Yes I think the report is legally inaccurate about the receivership.

https://www.klsescreener.com/v2/news/view/542064

This is a consequential agreement after the settlement agreement between Scomi and Prasarana on 4 April 2019. This is the rebounding point of Scomi since 2008. I guess we have to thank YB Anthony Loke for his effort in pursuading Prasarana to settle.

It is perturbed and unprofessional that Scomi did not even announce whether the conditions precedent of the Settlement Agreement have been fulfilled, though it now appears that they must have been fulfilled, as the non-fulfillment of conditions precedent will render the entire Settlement Agreement null and void, which is very crucial to be announced but no announcement is ever made by Scomi. But I share the joy with all of you that RM181 million is now in the pocket of Scomi. With more new monorail projects to come, I believe Scomi is sound in being revived. At least PN17 has become IMPOSSIBLE by now.

我也觉得是这样。

The result you get today is due to the seed sowed yesterday; if you do something good today you can only see the result tomorrow. Thus what Scomi is facing now is the result of previous poor management led by Shah Hakim; and what has been done good by the new team led by Sammy Tse can only be seen tomorrow. This message is for investors, not gamblers.

Thank you. I too don’t wish to lose my money.

Yes you are right, is all about feelings. Once they start to announce new projects, 0.06 kind of thing will become history.

Not to forget that Maybank has also indirectly subscribed to Scomi and will hold about 5% stake.

Let's be calm and think: is this a good or bad news? The answer is certainly "this is a good news for Scomi".

Look at today's announcement that MBB finally settled with Scomi, is this not what we have been waiting for? No more extension of time for MBB's demand. Today has finally come but people panic and sell for sentimental reason.

Once people calm down today and think, they will know the fact that they have overreacted today. I bet the share price will rebounce tomorrow to 0.75. Just a wild guess. Let's see.

It is fact that Scomi was nearly insolvent. It was so close to PN17 as reported by the Edge. We must be happy with that didn't happen. After Scomi settles disputes with Prasarana on 4 April 2019, we were all looking forwards to something good about Scomi, but Scomi cannot be good without settling its heavy debts. Now we see the solution, but with consolidation. Try to imagine, you prefer the current situation or PN17? No doubt the current situation is best for us. So now if you think you lose money, what about IJM? They lost so much and still have to pump in RM31 million. What about the new investor which pumps in RM20 million, and what makes Sammy Tse to personally pump in RM3 million to top up the Settlement Sum with Maybank? Sammy was newly appointed CEO but not Shah Hakim, why had he done so? Aren't these sufficiently shown that they foresee viable futures of Scomi? Let's not forget about the RM181 million from Prasarana pursuant to the Settlement Agreement. Let's also not forget Sammy and SAL are foreigners, they don't involve in local politics. Scomi started with policital backgrounds but now they have to fight with their own strength, which attracted investment from SAL and Sammy himself. No risk no gain. Most people lost in share markets because most of them are short sighted. They gamble and want to gain overnight. I think by end of this year we can see how Scomi turn around.

There won't be consolidation if a company is doing well. My understanding of right issue and warrants are a simple signal that the company asks public for more funds to survive. People buy shares to earn, so when there are profits they sell. So nothing wrong to say that it makes room for price to drop further as it can hardly go up in view of the profit taking scenario.

"Further to the above, SAL will be providing a payment of RM20.00 million as advances to
SGB while STKF has provided RM3.00 million, as advances to SGB. The total amount
totalling RM23.00 million will form part of the payment for the subscription of SAL and STKF’s
entitlement pursuant to the Proposed Rights Issue of Shares with Warrants. The advances
which will provided by SAL shall be interest-bearing while advances which has been provided
by STKF shall be interest free. For information, IJM had provided an advance of RM5 million
to SGB at the request of SGB. However, this amount will not form part of the payment for the
subscription of IJM entitlement pursuant to the Proposed Rights Issue of Shares with
Warrants."

"The Board of Directors of SGB had on 27 May 2019, agreed with Maybank, a settlement sum of RM38.00 million (“Maybank Settlement”) to be paid to Maybank in satisfaction of all SGB’s liabilities and obligations pursuant to the Memorandums of Deposit and the release of the Pledged Shares following such settlement as follows:-
(a) RM23.00 million cash settlement to be settled via the proceeds from the Proposed Rights Issue of Shares with Warrants. In the event SGB does not achieve Minimum Subscription Level, the Company shall pay RM20.00 million of the Maybank Settlement in cash to Maybank and the balance RM3.00 million due is to be payable over 4 quarterly instalment of RM750,000 each with an interest rate of base lending rate + 2.5% per annum; and
(b) RM15.00 million shall be settled via the issuance of new Consolidated Shares based on the Issue Price.
Based on the Issue Price which is RM0.18 per Right Share, 83,333,333 new Consolidated Shares will be issued to Maybank pursuant to the Maybank Settlement."

The above are the extracts from the announcement. It is apparent that the amount of RM23 million advanced by SAL and STKF tallies with Maybank cash settlement. That goes to show:

SAL agreed to provide a loan of RM20 million to SCB to settle Maybank's debt, which loan will be offset against the subscription of the Proposed Rights Issue of Shares with Warrants. The shortfall of RM3 million will be top up by STKF personally without interest. This means Maybank's debt is now settled. Isn't this a good news?

IJM will provide additional RM5 million advance which is additional and will not be utilised to offset against its subscription of the Proposed Rights Issue of Shares with Warrants. That goes without saying is to cover miscellaneous expenses which would include interim interest. Isn't this good?

The only thing dislike by the market is the share consolidation. No one will choose to invest at this timing for sure, hence the selling. Me too hates it. But be that as it may, I think Scomi long due problems are now coming to an end finally. This is already the bottom, luckily not PN17 or delisting. For Scomi long term investors I believe this is a good news for all. To see the result it will take time, perhaps a year or 2, or even shorter, but the dawn is breaking no doubt.

Looks like it.

Interesting to note that Scomies’ and Scomi’s prices are tied at the same rate.

But this is different. It involves the Federal Government of which the Minister himself attended the signing and made the announcement which involved Cabinet decision. Yet the conditions precedent are so procedural which are not difficult at all. Personally I don’t think the delay is an issue, as the Agreement has also provided for extension subject to mutual consent, I guess Prasarana can’t make any drastic adverse decision without bringing it back to the Cabinet.

Everyone is waiting for the announcement I guess, but someone is still collecting. It is hard to imagine if the Settlement Agreement is cancelled due to failure to fulfill the condition precedents, but even that they have to announce too. Guess the announcement will come latest by end of this month. Good luck.

Tomorrow is crucial. Let's wait for the announcement about the conditions precedent of the Settlement Agreement which are as follows:

"The SA is conditional upon the fulfilment of the following conditions within 14
working days from the date of the SA, or such period mutually agreed by the
parties, failing which the SA shall lapse and cease to have any further effect:

(i) the signing of an escrow agreement between the Parties and an escrow
agent (“Escrow Agent”) and the deposit of the complete set of
documents as agreed (“Agreed Documents”) with the Escrow Agent;

(ii) STP procuring a written legal opinion in relation to STP’s ownership of the
Agreed Documents;

(iii) STP procuring written confirmation from STP’s lenders that they are
agreeable to STP entering into the SA; and

(iv) the parties withdrawing their respective claims and counterclaims against
each other arising from the Contract in connection with the Project.

(collectively, referred to as “Conditions Precedent”).

These conditions don't seem difficult to be complied with.

This week is important for Scomi as the period of 14 working days for the conditions precedent of the Settlement Agreement dated 4 April 2019 between Scomi and Prasarana to be complied is going due on 24 April 2019. Once the conditions precedent are fulfilled, the Settlement Agreement will be triggered in which Prasarana will pay RM181 million to Scomi during the period when Scomi is to rectify and deliver the 5 trains, i.e. within 6 months from 24 April 2019 based on the Settlement Agreement as per the announcement. I believe that RM181 million will cover the continue serving of Maybank loan. This is why Maybank has extended until 30 April 2019, not the usual 7 days, 14 days etc as preferred by lawyers, which is to ensure that the Settlement Agreement becomes unconditional. I personally do not think the extension by Maybank is in anticipation of new investor(s).

Sorry the report is not available online so I can’t share the link here.

@birkincollector yes is in the edge this week. Thank you for pointing out as I didn’t subscribe to the edge. Most likely announcement will be made next week according to the source as reported. New fund will be injected to ease off Scomi’s financial burden. Other corporate exercise is also on the way which will take place between now to June 2019. It is very encouraging.