BHIC said in a bourse filing today the total RM183.26 million owed to three banks, namely Affin Bank Bhd (RM30 million), MBSB Bank Bhd (RM63.25 million), and AmBank Islamic Bhd (AmIslamic) (RM90 million), would be settled via a combination of cash and the issuance of new ordinary shares and “Class A” redeemable convertible preference shares, both conventional (RCPS A) and Islamic (RCPS-i A), at an issuance price of 57 sen per share.

The RM234 million debt with BHB would be settled via the issuance of new BHIC shares, “Class B” redeemable convertible preference shares (RCPS B) and “Class C” redeemable preference shares (RPS C), also at 57 sen apiece.

The shipbuilder said no cash proceeds would be raised from the proposed debt settlement with the lenders as it is undertaken to partially settle the outstanding financing facilities as of the cut-off date owed by BHIC to the lenders.

No proceeds would be raised by the company upon conversion of the RCPS A and RCPS-i A into new BHIC shares, it said.

BHIC said it is paramount for the group to undertake a restructuring of its debts to ensure the sustainability of its earnings, cashflow and future capital expenditure requirements moving forward.

Based on the unaudited financial results of BHIC for the period ended Sept 30, 2023, BHIC has shareholders’ funds of RM53.5 million after taking into account its accumulated losses of RM195 million.

It recorded a net cash and cash equivalents position of negative RM16.1 million.

BHIC’s shares were unchanged at 55 sen, giving the company a market capitalisation of RM136.65 million.