KUALA LUMPUR (March 19): Loss-making Sarawak Cable Bhd has requested for a second extension of time from Bursa Securities to resolve its Practice Note 17 (PN17) status.

The group had previously obtained an extension from Nov 1, 2023 to March 31 this year to formulate a plan to regularise its financial condition.

"The company will announce further developments on the above matter in due course," the group said in a bourse filing on Tuesday.

Sarawak cable was flagged as a PN17 company in September 2022 due to concerns raised by its external auditor about its viability as a going concern.

Over the past year, the group has taken steps to strengthen its financial position by selling non-core businesses unrelated to cable manufacturing.

In February, the group disclosed that Serendib Capital Ltd, a white knight, would conduct a revitalisation exercise involving RM250 million.

This investment was aimed at reducing debt and provide capital for the group to meet the increasing demand for infrastructure grid development and high-voltage cables. The nature of the RM250 million injection — whether it is a loan or equity — was not specified.

On Jan 24, Sarawak Cable entered into negotiations for a new restructuring plan with its creditors, following the rejection of its initial proposal. This was to address the halt in credit and financing lines.

For the second quarter ending Nov 30, 2023 (2QFY2024), the group reported a net loss of RM35.82 million, a significant increase from the RM11.74 million loss in the previous year. Revenue decreased by 26.46% to RM107.46 million, down from RM146.12 million.

For the first half of FY2024, its net loss expanded to RM48.54 million from RM12.28 million during the same period of FY2023, with revenue falling 38.68% to RM199.52 million from RM352.4 million.

Sarawak Cable’s shares ended the day down by half a sen or 3.13% at 15.5 sen, valuing the group at RM61.8 million.

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