KUALA LUMPUR (July 24): Practice Note 17 (PN17) company EA Technique (M) Bhd (EATech) said it has withdrawn the regularisation plan it had submitted to the stock exchange in April.

This came after the oil tankers and port marine services provider agreed to mutually terminate the share subscription agreement it entered in March with Eco Offshore Services Sdn Bhd (EOSSB) and two individuals, namely Tan Sri Abdul Halim Ali and Khiruddin Ibrahim Said.

“The company will engage in discussions with potential investors and submit a new regularisation plan application to Bursa Securities in due course. Further announcements on the new proposed regularisation plan will be made as and when appropriate," EATech said in a bourse filing on Monday (July 24).

EOSSB is an investment vehicle owned by Eco World Development Group Bhd co-founder Tan Sri Abdul Rashid Abdul Manaf.

Abdul Rashid would have emerged as EATech's controlling shareholder with a 53% stake if the subscription agreement had materialised.

EATech slipped into PN17 status in February 2022 as its shareholders’ equity of RM5.96 million as at Dec 31, 2021 was less than 50% of its share capital of RM179.76 million.

Bursa Securities has granted EATech a six-month extension up to Aug 24 to submit its regularisation plan.

EATech said the withdrawal of the regularisation plan application will not affect the scheme of arrangement (SOA) it had undertaken in December 2022, as the company has up to July 11, 2024 to make payments to the scheme creditors.

"For the avoidance of doubt, EATech had obtained the High Court sanction for the SOA on Jan 4, which was lodged with the Companies Commission of Malaysia on Jan 12," it added.

EATech’s share price closed down one sen or 5.88% at 16 sen on Monday, giving the company a market capitalisation of RM84.88 million.

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