A loan, such as conventional loan allows one to borrow something/money and expects to be paid back with an added interest, which is more than what was borrowed.
In Islamic/Shariah-compliant financing, such interest is not allowed. If one borrows a certain value, it will be paid back with the exact same value. Interest financing, in my point of view, can make the poor, poorer and the rich, richer.
Since someone in here stated that PERISAI have agreed to receive conventional loan, I assume that is the reason it is no longer a Shariah-compliant stock.
I sold my basket of farm eggs in exchange for Perisai's shares this morning, 10 farm eggs for 100 Perisai's share, dont know will get some gain or get kaysai
The outlook for the demand for the oil and gas assets in the short to medium term remains challenging. The Group will remain cautious on its capital and cost management. Operational efficiency of the operating asset is expected to be maintained. On 22 June 2017, Perisai Offshore Sdn Bhd and Petronas Carigali Sdn Bhd have agreed to extend the duration of the contract for the provision of jack up drilling rig, PP101 based on an agreed formula which is primarily dependent on the prevailing market rate for the daily charter. Unless there are changes to the prevailing market rate, the contract is expected to be extended for a period of approximately twenty (20) months. Save as mentioned above, the Group is pursuing various opportunities for all its other assets that are out of charter. On 8 June 2018, in the court convened meeting, the Scheme Creditors of the Company have approved the Scheme with the requisite majority. On 1 August 2018, the application in relation to the Proposed Regularisation Plan has been submitted to Bursa Securities for approval. On 8 August 2018, the Company has obtained an extension of the Restraining Order from the High Court of Malaya at Kuala Lumpur for a further period of nine (9) months effective from 8 August 2018 restraining all proceedings and actions brought against the Company. The proposed regularization plan is expected to be completed by fourth Quarter of 2019.
The lose is mainly due to impairment loss. However,
'The Group did not revalue any plant and equipment during the financial year ended 30 June 2018. As at 30 June 2018, all property, plant and equipment were stated at cost less accumulated depreciation and provision for impairment. ".
There is huge impairment loss in this quarter. If impairment loss written back, it is manipulated to create a positive results by company.
A company with negative Equity of -RM357mil. Or -RM0.28 per share.
Can they still participate/tender in any Petronas contracts?
Whats the play here? How do investors (especially those that are buying now) expect to make money?
In distress companies normally investors target the debt which in most turnaround cases will be converted to equity. Current equity holders normally will face dilution but if there is a concrete turnaround plan, dilution is still far better that bankruptcy (in Perisai case, equity shareholder will be totally wipe out since NTA is negative).
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Lim Tek Wai
2,386 posts
Posted by Lim Tek Wai > 2018-08-10 10:21 | Report Abuse
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