Updated: Wednesday July 31, 2013 MYT 3:40:21 PM KUALA LUMPUR: Shipping company, Global Carriers Bhd, is looking for new shareholders and fund injection to strengthen it by revamping its services before next February.
Executive Chairman, Nora Azrina Azlan, said the company faced challenging and difficult times throughout the year as the clean petroleum products market segment, in which the group's vessels were employed, continued to be depressed.
"Shipping is a cyclical business and its performance depends on the economy.
"In addition, the business operations of the company have significantly been affected by the present slump in the global shipping industry," she told a media briefing after presenting the financial year report here today.
She said the harsh market environment continued to squeeze the company's cashflow and profit margins, including its ship asset values which subsequently had to be subjected to accounting impairments.
Nora said the company was currently in the midst of preparing a regularisation plan with a view to reaching an agreement with its lenders to restructure its debts.
"We are also in discussions with our lenders to regularise our financial condition and business operations," she said.
For the first quarter ended March 31, 2013, Global Carriers reduced its net loss to RM4mil from RM4.8mil in the previous corresponding quarter.
Its revenue dropped to RM6.2mil from the RM13.1mil previously.
The company fell into Practice Note 17 (PN17) status on March 1 on the decline in its shareholding equity to RM40mil, which is less than 25% of its issued and paid-up capital.
Global Carriers is also PN1 company due to its default in the repayment of bank borrowings and its inability to provide a solvency declaration to Bursa Securities. - Bernama
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