Scomi on the brink

KUALA LUMPUR (Feb 9): The Scomi Group was once an investor favourite but over the years, it seems to have lost its lustre.

The group sailed through the oil price surge from 2008 but faltered shortly after, dragged down by a lack of efforts to recapitalize by the shareholders as well as other external factors.

Scomi Group is on the brink of being classified as a PN17 company, a category for cash-strapped entities under Bursa Malaysia’s listing rules, and its other units are not doing too well either.

Just last month, what seemed like infighting broke out between Scomi Group Bhd and its 65% subsidiary Scomi Energy Services Bhd over certain related-party transactions involving loans between the two. The matter is now the subject of an investigation.

Aside from this, there are other issues as well, such as Scomi Engineering Bhd and its joint-venture partner being terminated from an operations and maintenance contract at the Mumbai Monorail project in India.

What has happened to the companies under the Scomi stable?

Find out in the latest issue of The Edge weekly.

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Source: TheEdgeMarkets