Protracted economic downturn in Malaysia dragged down business performance.
Chaswood Resources Sdn. Bhd. (CRSB), a wholly-owned subsidiary of F&B operator Chaswood Resources Holdings Ltd, has started restructuring proceedings.
As of September 30, net liabilities of CRSB are at $16.31m (RM50m) with total outstanding borrowings to scheme lenders at $7.18m (RM22m) of credit facilities.
According to a filing with the SGX, sales decline and operational losses due to protracted economic downturn in Malaysia for the last three years have weighed heavily on business performance of its Malaysian unit.
CRSB has registered consecutive losses after taxation of $3.16m (RM9.7m) in 2015 and $2.94m (RM9m) in 2016.
As such, Chaswood is undertaking business rationalisation measures including cost-cutting methods at offices and restaurants, containing operating costs, closing non-performing restaurants among others.
The company is also holding discussions with principal lenders – CIMB Bank Berhad, Malayan Banking Berhad, AmBank Berhad, to address restructuring and rescheduling of loan payments.
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