Felda chairman Megat Zaharuddin Megat Mohd Nor said these included restructuring bank loans and obtaining an extra lifeline for payments, as well as disposing of some of the company’s assets in the country and overseas.

“We have assets in London, namely a hostel, apartment and hotel, alongside hotels in Kuching and Kota Kinabalu with some land in certain places,” he told reporters during a special media briefing here today.

According to Megat, the assets which are worth between RM2.1 billion and RM2.2 billion will be used to pay Felda’s debt of RM8 billion.

He said Felda aimed to reduce its debt to RM6.5 billion by year-end from the current RM8.025 billion via the disposal of assets, adding that it was seeking to do so at a higher price.

The newly appointed chairman said after taking over the company seven weeks ago, he found that one of the biggest challenges facing Felda was its almost depleted cash flow position as a result of loans taken from banks.

“The weak cash flow problem is also due to low palm oil prices. The company will be submitting a white paper to the government to be tabled at the next parliamentary sitting.

“It will tackle various issues in Felda, including poor planning, governance and malpractices,” he said.