KUALA LUMPUR (July 5): Practice Note 17 (PN17)-status company Daya Materials Bhd announced today that it has defaulted on additional payments to AmBank (M) Bhd amounting to RM835,483.31, bringing its total debt to the bank to RM1.11 million.

In a filing with Bursa Malaysia today, Daya Materials said its subsidiary Daya CMT Sdn Bhd had defaulted on the payment which was due today (July 5), in relation to banking facilities granted by AmBank to the company.

The group said that its failure to pay for the banking facilities was due to Daya CMT's cash flow constraints that have caused the company to not being able to pay its payment obligations to Ambank in a timely manner.

"Daya CMT and Daya Materials will discuss with AmBank to regularise the outstanding payment of the total outstanding amount," it said.

Daya Materials added that its board has put in place several fund-raising exercises to address the issue.

Without disclosing any details, it said the fund raising exercises will be able to repay the principal and interest due on the total outstanding amount.

On Tuesday, Daya Materials announced that Daya CMT has not paid the outstanding amount of RM277,638.22 to Ambank which was due on June 27.

In fact, Daya Materials has been defaulting on several credit facilities from other banks since Feb 27, including RHB Bank Bhd, United Overseas Bank (Malaysia) Bhd (UOB), SME Bank Malaysia Bhd and MBSB Bank Bhd.  

Shares of Daya Materials today closed up 0.5 sen or 50% at 1.5 sen with a market capitalisation of RM30.64 million.