The debt settlement will be made to Affin Bank Bhd (ABB), MBSB Bank Bhd (MBSB), AmBank Islamic Bhd (AMIslamic) and Boustead Holdings Bhd (BHB).

In a statement, the shipbuilder proposed to partially settle the estimated amount of up to RM30 million owed to ABB as of Dec 31, 2023.

The group also plans to partially settle the estimated RM63.3 million owed to MBSB, and RM90 million to AmIslamic as of Dec 31.

Additionally, it will fully settle its debts with BHB, amounting to RM234 million.

“With this approval, subject to the completion of all conditions, BHIC’s shareholder funds will increase from RM61 million to RM420 million,” it said.

The resolutions at the EGM today include the amendment of the company’s constitution to facilitate the issuance of new conventional and Islamic redeemable convertible preference shares to the lenders and BHB, as part of the debt settlement.

With 99.93% of the shareholders voting in favour of all the resolutions, BHIC anticipates this will “pave the way towards financial stability and recovery”.

In its latest results for the financial period ending Sept 30, 2023 (Q3 FY2023), the group reported a net loss of RM5.72 million, compared with a net profit of RM564,000 a year ago.

At the time of writing, BHIC’s share price was lower by 1.5 sen or 3% at 48 sen, with a market capitalisation of RM120.5 million.