KUALA LUMPUR (Aug 17): Malaysia Pacific Corp Bhd (MPCorp) — whose shares will be suspended from trading effective from Friday (Aug 19) — has bagged two subcontracts worth RM44.91 million from Windsor Aims Machinery Sdn Bhd.

In a separate filing with Bursa Malaysia, MPCorp said it has inked a memorandum of understanding with Windsor Aims to negotiate for a joint collaboration agreement (JCA) or any other agreements for the implementation of its proposed regularisation plan.

The Practice Note 17 (PN17) company told Bursa Malaysia that its wholly owned subsidiary Euronium Construction Sdn Bhd (ECSB) has received two letters of award (LOAs) to undertake the subcontract works.

Windsor Aims is into trading and renting of machinery. It is also a contractor for construction and maintenance works.

MPCorp said the LOAs of Johor projects represent its effort to revitalise its construction activities and present an avenue for the group to improve its income streams and profitability for the financial year ending June 30, 2023 (FY23).

The Johor projects are ECSB's maiden projects in its foray into the construction sector, it said.

MPCorp said the work scope for both projects is to supply services, materials, resources, plant, and machinery for the construction until the completion of the works.

Both projects are expected to kick-start on Sept 1 and shall complete within 12 months from the date of commencement.

The proposed regularisation plan would involve, inter alia, proposed capital reduction, proposed debt-equity conversion, proposed shares issuance and proposed rights issue.

"The execution of the JCA forms part of the company's regularisation plan to regularise the company's PN17 condition and maintain its listing status on the Main Market of Bursa Securities," it added.

Last Thursday (Aug 11), following Bursa Securities rejecting MPCorp's request for an extension of time to submit its regularisation plan, MPCorp said the trading of its shares would be suspended from Friday.

MPCorp also faces the risk of being delisted on Aug 23 unless it files an appeal against the delisting by Thursday (Aug 18).

The company slipped into the PN17 status nearly eight years ago in December 2014, after its external auditor expressed a disclaimer opinion on its audited accounts for the financial year ended June 30, 2014. The auditor was not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.

Shares in MPCorp closed 0.5 sen higher at two sen on Wednesday (Aug 17), giving it a market capitalisation of RM6 million.

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