The decision to wind up the company was made a year after its delisting from Bursa Malaysia.
It also signals the end of the road for the company previously known as Ramunia Holdings Bhd, which was one of the high flyers during the oil and gas industry’s boom years.
In a winding-up notice, THHE cited the main reason was due to its inability to sustain operations that are attributed to outstanding liabilities, according to a report in The Edge. It also stated a meeting of creditors is scheduled on Oct 4.
THHE was listed on the Main Market of Bursa in January 2005, after being actively involved in the oil and gas industry since 2002, and shipbuilding and ship repair since 2016.
Its wholly owned subsidiary, THHE Fabricators Sdn Bhd (THF), was one of the few Petronas-licensed major fabricators and shipbuilders in Malaysia.
The company is controlled by the MoF unit called Urusharta Jamaah Sdn Bhd (UJSB), which holds a 64.45% stake in the company prior to its delisting on Sept 5, 2022. Lembaga Tabung Haji emerged as a substantial shareholder in 2007 before becoming a controlling shareholder in 2012. In 2018, Tabung Haji transferred all its interest in THHE to UJSB.
In 2014, the O&G industry downturn pulled the company further into the red, and it has not been able to recover ever since.
Attempts to shift focus towards building vessels such as the offshore patrol vessels (OSVs) for the ministry of home affairs were unsuccessful in reviving its financial standing.
In Sept 2022, THHE was delisted after failing to come up with a restructuring exercise despite being given eight extensions by the exchange since entering Practice Note 17 (PN17) status in April 2018.
The decision to wind up came after THHE filed an ex-parte originating summons in July to call for a creditors’ meeting to propose a scheme of arrangement for the company.
Global Mariner Offshore Services, Blackstone Technology Sdn Bhd and Dynac Sdn Bhd have reportedly filed applications to intervene in THHE’s ex-parte application.
THHE had a joint venture partnership with Global Mariner, but a legal dispute arose between the two companies. The High Court ordered THHE to pay Global Mariner approximately RM288.72 million in damages.
This judgment was a result of THHE’s failure to honour a shareholder’s agreement, specifically the transfer of its 80% stake in Floatech (L) Ltd to Global Mariner, following THHE’s default on its loans.
According to the winding-up notice, the board of directors of THHE passed a resolution to wind up the company on Sept 8.
Meanwhile, Andrew Heng and Ashvin Mahendran of Baker Tilly Insolvency PLT have been appointed as the interim liquidators, the notice said.
As at end-June 2022, THHE had a capital deficiency of RM210.87 million. It had RM393.14 million in total liabilities against RM182.27 million in total assets.