PETALING JAYA, KNM Group Bhd has unveiled its proposed regularisation plan aimed at exiting Practice Note 17 (PN17) status. A central element of the plan involves the disposal of its German unit, Deutsche KNM GmbH (DKNM), for €270 million (approximately RM1.3 billion). The group also plans to reduce and consolidate its shares from 4.05 billion to 1.01 billion, a move intended to eliminate accumulated losses.
Upon completion, KNM expects to operate with minimal debt, retained reserves of RM240 million, and a net asset base of RM284 million, up from RM273 million previously. The regularisation plan is tied to a creditor-approved scheme of arrangement, which seeks to restructure RM1.188 billion in debt and waive RM320 million in interest and penalties.
KNM slipped into PN17 status in October 2022 after its external auditor raised uncertainties over the company’s ability to continue operating.
In addition, KNM will secure an RM100 million loan from existing creditors and RM204 million in bonds to fund working capital and settle remaining obligations. KNM slipped into PN17 status in October 2022 after its auditor flagged significant uncertainties over the group’s ability to continue as a going concern. Chairman Tunku Yaacob Khyra said the plan reinforces KNM’s financial foundation and sets the stage for long-term sustainability.
Chief executive officer Ravindrasingham Balasingham added that the disposal of DKNM and the successful execution of the plan are critical for the company’s turnaround.
“With continued support from creditors and shareholders, we are confident of restoring KNM to profitability and long-term growth. The RM100 million in working capital will be essential in reigniting operations,” he said. Approval for the disposal of DKNM and the regularisation plan will be sought at an upcoming extraordinary general meeting.
