Malaysia's Gula Perak restructuring will not be implemented; noteholder meeting postponed indefinitely

By Caroline Salls

Pittsburgh, April 24 - Gula Perak Bhd. said the proposed restructuring of its RM 288.82 million of five-year redeemable convertible secured notes will not be implemented because a meeting of the noteholders has been postponed indefinitely.

According to a Gula news release, restructuring negotiations are ongoing with the noteholders.

As previously reported, the company missed the April 22 RM 17.24 million coupon payment and redemption of the notes.

The Securities Commission approved an extension of the notes' maturity date to April 22, 2011 from April 22, 2008, but the extension is subject to approval by the noteholders.

However, the company said on Tuesday that a resolution to hold a noteholders' meeting with less than 14 days notice did not pass, and a resolution related to the proposed restructuring was not approved.

As a result, all of the required approvals were not obtained before the April 22, 2008 maturity date.

Gula is a Malaysian hotel operator.

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