KUALA LUMPUR: BIMB Holdings Bhd’s share price fell to a low of RM4.35 on Friday on growing worries about financial companies’ exposure to the troubled oil and gas (O&G) companies with debt problems.

At 10.48am, it was down 13 sen to RM4.35 with 7,600 shares done.

The FBM KLCI fell 1.53 points or 0.09% to 1,754.10. Turnover was 529.97 million shares valued at RM292.03mil. There were 252 gainers, 301 losers and 313 counters unchanged.

StarBiz reported the recent missed payments by Perisai Petroleum Teknologi Bhd and Alam Maritim Resources Bhd may have sparked fears that Practice Note 17 company TH Heavy Engineering Bhd (THHE) could soon follow suit.

There is market fear that THHE, which has debt in excess of RM300mil, may be next to be unable to meet its debt obligation, Starbiz reported.

The latest development was Nam Cheong Group Bhd which is unable to service its debts due to the prolonged downturn in the oil and gas (O&G) industry.

The company, which is based in Sarawak and listed in Singapore, had outstanding debts of some RM1.84bil as of its latest reported first quarter ended March 31.

It said that it would temporarily cease repayments on all its borrowings, pending a restructuring of its debts.

Thus, Nam Cheong said it would not be making a payment of the next coupon for its bonds due on July 23, 2017 with respect to the Series 004 Notes. 

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