Muhibbah Stock Plunges, Major Client In Receivership
Shares of Muhibbah Engineering plunged 20% or 38 sen yesterday on news that Asia Petroleum Hub (APH), a big client that owes money, was in receivership, The Star reported. The stock closed at RM1.52 with 74.35 million shares traded. CIMB Research on its report yesterday said the receivership status for the APH project as reported by a foreign newspaper on Wednesday was a negative surprise. APH had been put under receivership mainly because it could not come up with other investors to help fund the development and repay its debt. The news said APH had secured in 2006 a RM1.4bil three-year bridging loan but has been looking for RM2bil in additional funding following escalation of the project cost. It has been placed under a receiver -Malaysian accounting firm BBDO-Binder. Read more.