KUALA LUMPUR: Financially distressed Bina Goodyear Bhd is hopeful of returning to the black this year or by early 2015, once it receives Bursa Malaysia’s green light to carry out its revamp plan.

Having slipped into Practice Note (PN) 17 category in November 2012, the company is in the finalisation stage of its restructuring plan, which it intends to submit to Bursa by early February.

The construction and building contractor will need to report two consecutive quarters of profit before it is able to exit its PN17 status.

The restructuring plan includes its acquisition of Astinas Construction & Development Sdn Bhd’s (ACD) construction business for RM10mil, which would enable it to rebuild its construction business and immediately enhance its revenue and profits.

The acquisition furnishes it with a construction orderbook of RM250mil, predominantly for projects in Johor.

“The agreement has been signed, and we are now doing the due diligence,” managing director Moo Hean Chong told reporters after the company AGM.

Meanwhile, executive director Eng Kim Leng said the company would begin to bid for more projects once it was in good financial position and had recapitalised.

Shares in the company rose to as high as 18 sen yesterday, ending the day at 16.5 sen, with 412,800 shares being done.

Bina Goodyear has been involved in “fairly prestigious” projects, including the Palace of Justice in Putrajaya, Masjid Sultan Salahuddin in Shah Alam, and several buildings in KL Sentral and Mont’ Kiara.

“We are quite established and have a very good track record … there are so many projects out there, but very few parties are able to deliver them,” said Eng.

Its focus is currently predominantly on construction projects in the Klang Valley and Johor, via ACD. However, it does not rule out bidding for profitable projects in the future within the country.

Eng added that the orderbook of RM250mil would be able to last it for two years. “I think for public-listed companies of good standing, we’d normally go for a minimum of a few hundred million. Anything less than an orderbook of about RM300mil is too small,” he said.

Bina Goodyear will fund the acquisition of ACD via a rights issue and private placement, which is part of the restructuring plan.

It has proposed a rights issue of up to 254.4 million new shares on the basis of 50 rights shares for every Bina Goodyear share held.

It will also undertake a private placement of 50 million shares to investors who have yet to be identified, at an issue price of 10 sen per share.

Additionally, it is acquiring 28% of property developer Ontime Privilege Sdn Bhd for RM9.63mil via the issuance of 96.3 million new Bina Goodyear shares.

Although this provides the company with the opportunity to venture into property development, Moo said the focus would remain on construction.

The restructuring plan also entails a capital restructuring exercise, offer for subscription, and scheme of arrangement.

According to its previous filing with Bursa, Bina Goodyear aims to raise RM35.27mil from the rights issue and private placement, which will be primarily used as working capital, and the scheme of arrangement, acquisition of construction projects, and expenses relating to the restructuring scheme.

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