KNM Group Berhad looks to its Malaysian operations as part of its plan in moving forward. This was shared with shareholders at the company’s annual general meeting recently.
The company recounted a challenging period that began in December 2021 when it defaulted on its Asian Development Bank bond facility. By the third quarter of 2022, KNM had defaulted on other significant borrowings and was subsequently classified as a Practice Note 17 (PN17) affected issuer. Amid these financial headwinds, the intended disposal of Borsig GmbH fell
following the buyer’s inability to secure the necessary funding before the long-stop date, and KNM faced several winding-up petitions.
Recounting on the adversity, KNM said it had successfully obtained protection under Section 366 of the Companies Act and crucially gained the confidence and support of a majority of its creditors, including the Asian Development Bank, private equity debt providers, and key banking partners. Through this support, along with the commitment of its customers and shareholders,
KNM continued to deliver on its projects and endured two hostile takeover attempts.
Earlier this year, the Company reached a major milestone with the successful identification of a new strategic buyer for Borsig, securing an attractive transaction that will allow KNM to substantially settle its outstanding obligations and strengthen its financial footing.
Looking ahead, KNM said it is preparing to rebuild its operations in Malaysia, leveraging its 35-year track record in the process equipment manufacturing sector. At its peak in 2019, KNM’s Malaysian operations employed over 800 staff and exported 70% to 80% of its products globally.
At the AGM, the Board, led by Y.M. Tunku Dato Yaacob Khyra, Chairman of KNM Group Berhad, briefed shareholders on the Company’s strategy to hold a court-convened creditors’ meeting and regularise the business within the coming months.
KNM Group CEO, Ravindrasingham Balasingham said “KNM is a well-established brand in the processing equipment industry in Malaysia. A home-grown company with our legacy, achievements, and global reach must be retained and nurtured. We are focused on rebuilding our capabilities and continuing to serve both domestic and international markets.”
