PUBLISHER Utusan Melayu (M) Bhd has been rated PN17 after defaulting on bank payments and is at risk of delisting in a year’s time should it fail to regularise its finances, The Edge Markets reports.

The Umno-owned publisher of Malay-language newspapers and magazines, Utusan Malaysia and Mingguan Malaysian being its most well-known products, was classified as a Practice Note 17 (PN17) company after missing principal and profit payments totalling RM1.18 million to Maybank Islamic Bhd and Bank Muamalat Malaysia Bhd. 

It has failed to provide a solvency declaration to Bursa Malaysia.

In a filing with the bourse today, it said: “The company is looking into formulating a regularisation plan to address its PN17 status and will make the necessary announcement on the regularisation plan in due course.” 

Utusan is required to submit a regularisation plan to either the Securities Commission or Bursa Malaysia within 12 months from today. Failure to comply will see the suspension of its listed securities followed by delisting.

Utusan announced on August 10 that financial constraints had led to its defaulting on RM1.18 million of principal and profit payments due to Bank Muamalat and Maybank Islamic.

It proposed a private placement of 11.07 million new shares, or 10% of its 110.73 million issued shares, to raise RM2.1 million to repay the banks and for expenses incurred by the exercise.

Utusan has reported a loss every year since 2011. Its shares dropped 2.3% today to 21 sen for a market capitalisation of RM23.25 million. Year to date, its shares have dropped by 45%, to erase  RM18.8 million in market capitalisation. – August 20, 2018.