KUALA LUMPUR (July 2): Loss-making Scomi Group Bhd is borrowing RM1 million from a firm linked to CEO Sammy Tse Kwok Fai, to use for working capital requirements.

In a filing today, Scomi Group said it has signed a loan agreement with SBI Spectrum Sdn Bhd, in which Tse is a substantial shareholder.

“Both SBI and Sammy Tse Kwok Fai are deemed interested in the financial assistance,” the PN17 group said in a filing with Bursa Malaysia.

Tse has been Scomi Group’s chief executive officer and executive director since Aug 2, 2018.

For the third quarter ended March 31, 2020, the group made a net loss of RM126.69 million.

Scomi Group said the RM1 million loan carries an interest rate of 8% per annum, and the tenure will be for six months from disbursement.

It added that the loan is not expected to have any material effect on its consolidated earnings other than the interest expense.