TH Plantations Needs Debt Restructuring, Not Asset Sale

The debt burden currently faced by TH Plantations Bhd (THP) cannot be resolved via asset sale but rather a restructuring of its debt, said Deputy Minister in the Prime Minister’s Department (Religious Affairs) Ahmad Marzuk Shaary, The Edge reported. Speaking in the Dewan Rakyat today, Ahmad Marzuk raised the suggestion on grounds that the bulk of THP’s debt goes to parent Lembaga Tabung Haji, and that asset sale will negatively impact THP’s cash flow rather than improve it. “About 75% of the loans by THP came from Tabung Haji. Sale of assets will not resolve the debt burden issue… THP will require a restructuring of the loans,” he said. He was responding to questions by former minister in the Prime Minister’s Department (Religious Affairs) Datuk Seri Mujahid Yusof Rawa on how THP can turn around without selling its assets considering the ballooning debt after the aggressive expansion of its landbank. Read more

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