I received the following in the email from a reader. It sounds genuine enough. I am accepting it at face value. My comments follow.
Yesterday (Wednesday?), TH Heavy Engineering Bhd (THHEB) conducted the Court Convene Creditor Meeting (CCCM) for its subsidiaries/associates company, THHE Fabricator Sdn Bhd (THHEF), THHE Offshore Services Sdn Bhd (THHEOS) and O&G Works Sdn Bhd (OGW).
THHEB conducted their own CCCM today.
The total debt for THHEB, THHEOS and THHEF (excluding OGW) is more than RM600 million. They are unable to pay their debts.
These companies were totally mismanaged by the people appointed by the Government. The ex-CEO is currently on trial for corruption more than RM50 Million.
Arising from the CCCM, the results : Creditors accepted the Scheme Of Arrangement for THHEB and THHE Fabricator with 91% and 94% acceptance respectively (Accepting settlement of RM0.50 per every RM1 Debt).
For THHE Offshore Services Sdn Bhd, Creditors rejected the Scheme with 81% rejecting it (Rejecting settlement of RM0.118 per RM 1 debt) – ridiculous proposed settlement.
The consequences of this result : THHEOS will be liquidated and wound up.
This will be a big blow to the government.
A GLC is liquidated because unable to settle debts!!!!!!!!
I believe the announcement to Bursa will be soon.
We are both creditors for THHEF and THHEOS.
It was also a doomed day for us as we have to write-off about RM6 – RM7 Million arising from this exercise.
Being a small company, writing off this amount will make the company insolvent and we are definitely not able to pay our own creditors.
We are a good Bumiputra company and good tax paymaster.
We have even paid tax on the profit generated from the THHEF and THHEOS projects despite not receiving the payments from them.
(They have not paid for more than 2 years).
Now, we have to write off this amount and we also cannot get back the money that we have paid for the tax on the “Fake Profits”.
You only get tax credit. What an unfair world….!!
We accepted the contract works from THHEF and THHEOS on the understanding that they were a GLC. If only we can turn back time….!!
Now, we are doomed. It is a matter of time that we have to close SHOP.
You are right, perhaps the Government would like to see all the SHOPS to be CLOSED.
All the stakeholders lost money and the losses are irrecoverable due to the incompetence of Government to manage the GLC.
In the first place, why they have all these GLCs ?
They should just do the governing job and leave managing the business to the non-crony businessman.
I believe one day God will punish all of them……all of them.
Related Story: ‘Najib awarded RM740m direct contracts to bail out TH subsidiary’
My comments :The situation is really quite bad. A friend of mine, a former Chairman of a major GLC, says that the entire 1MDB scandal is a diversionary tactic. He says there is something else going on. Much bigger than 1MDB.
Lets look at THHE above. The ex CEO has been arrested and is now under trial for corruption involving RM50 million. 50 MILLION !!
THIS is the amount with which he is being charged. There is likely to be more than this which is not part of this charge. The ex CEO alone songlap RM50 million.
Folks, do you honestly believe that the ex CEO acted alone? I dont think so. There must be others involved, folks senior to this guy. They are untouched and/or worse they remain in place.
Read this part again :
The total debt for THHEB, THHEOS and THHEF (excluding OGW) is more than RM600 million. They are unable to pay their debts. They have obviously songlap-ed more than RM600 million of other peoples’ money (their creditors or hutang money). Obviously the RM600 million hutang money went to pay for things that are not there to help the company’s business.
They cannot pay back the hutang of RM600 million. A company this size must have substantial paid up capital, reserves, retained earnings etc. I would say at least to match that RM600 million hutang. Lets say their own money was another RM600 million. Where is it? Also hilang? Maybe all in, a billion Ringgit has been lost? Its possible.
And this has been going on for sometime.
Then there is Felda. I suspect the biggest nail in the coffin is over at the oil company.
All this stealing has been going on since about 2009 or earlier. Since Kepala Bapok took over.
Going back to this THHE news, since they have not paid their suppliers and contractors (like to the company above) these companies are also going bust.
“also doom for us as we have to write-off RM6 – RM7 Million from this exercise. Being a small company, writing off this amount will make the company insolvent..”
The bumiputra economy, which is so gomen dependent is being destroyed.
I keep repeating ‘Melayu miskin dulu’ to drive home the point that it is gomen policy that is making the Malays and the bumiputras poor.
It is not the fault of the Chinese, the Jews, the Christians, the Mohicans, Mohawks or the Apache.
Stupid policies by a stupid gomen is making their people more stupid and poor.