Muhibbah Again..Some Extra Points Raised By Brotherlone85

Okay, my third post on Muhibbah within a 14hours time frame is bordering spamming. So, hopefully this will be the last one as I want to highlight Brotherlone85 comments.

If you have not read the first two posts, please read it here:

The Muhibbah Fiasco : How Lousy Disclosures Costs Shareholders Monies and;

New Info, Old Info - The Muhibbah Surat Khabar Lama Man

Here's Brotherlone85 comments. Do take note on the internal news on the shareholder tussle as well as the interpretation of companies act and how it affect Muhibbah RM300-odd mil receivables.

brotherlone85 said...

hey Snowball,

how r u... great points on their disclosures... 

the market is actually fully aware of this, and this is reason why they were trailing the market despite having exposures in hot sectors like the oil and gas and construction sector 

....untill research houses brought them on roadshows, where Muhibbah claimed that APH is on the verge of securing RM1b equity from a Chinese investor.(who?, dont know) 

anyway... the stand off and delay in APH is due to it's sharehodler tussle, S.M trying to gain control vs other shareholders....also opreationally i heard, APH's tank farms are acutally build on reclaimed land,apparently it wasn't done properly, and the land there is acutally sinking :) not good if you intend to place tank storages on site .. 

this whole thing is fishy... why? 

share price continued on an uptrend, even after the receiver was appointed a month ago. 

if CIMB decides to take a haircut, Muhibbah similairly, will have to take haircut, and worse.... those are trade receivables for work done which are unsecured. muhibbah would get nothing if CIMB has a lien over APH's assets, and the recoverable amount is less than RM1b...... its project financing, if its not compelted, i dont tthink the full amount is recoverable... CIMB would've taken this off balance anyawy... we wont know... 

under a receivership, according to Company Act 21.022 ..... ' the receiver is to posses himself of, and to manage the assets and undertaking of a colelction of companies '
CIMB won't give a hoot bout contractors receiveables, they just want to write back some provisions... as NPL is already a big concern...

the grounds to appoitn a receivership is only when a security is in jeopardy, what security is in jeopardy? no mention.... 

muhibbah just got suspended, and this is what they've announced 
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The Company is one of the contractors in respect of the Project known as Procurement, Construction and Commissioning of a Petroleum Hub and Bunkering Facility at the Reclaimed Island Off Tanjung Bin, Johor (APH Project). The receivables for certified work done and related costs amount to RM 370.8 million as at 31 Dec 2010.

With reference to the articles in the Singapore Business Times on 15 June 2011 regarding the appointment by CIMB (the financier of APH project) of receivers and managers for APH, the Company wishes to inform that according to APH, they have identified an investor, and are in negotiations with the investor to fully finance the completion of the APH Project, including making due payments to contractors.

As this is a oil and gas project with a secured business and the said investor due to finalise its financing transaction with APH, there are reasonable grounds to hold that the receivables are recoverable in due course. 
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AGAIN... no mention of any timeline!... sigh.... 

the announcment would prolly give investors some false comfort, and prolly buy insiders more time and better price to cash out... 

.... i actually quite like their crane business, favelle favco... one of the few successfull made in malaysia story

JUNE 17, 2011 11:51 AM 

Lol..the thing is build on sinking land...Malaysia Boleh...S.M Boleh...Macam mana-la nak compete dengan Negara Singa jika bina tangki kat land yang stable pun tak tau buat...I tak tau apa macam want to say...