When it rains, it pours.
One doesn't need to be a rocket scientist to predict that the write-offs would be huge for Silver Bird, but even then, the amount came way above expectattion.
From plus RM 213 million Shareholders' funds in one foul move to minus RM 83 million:
"Based on the financial position of the SBGB Group as at 29 February 2012, the Special Committee of SBGB also wishes to announce that subject to the approval of the relevant authorities, creditors and shareholders, the Group intends to seek the support of its bank lenders, major creditors and major shareholders to undertake a PCDRS. In this connection, the Special Committee of SBGB wishes to announce that Appendix 1 and the PCDRS will be or have been forwarded to the creditors and shareholders of the SBGB Group for discussion purposes. The PCDRS essentially envisages a proposed capital reduction, a proposed rights issue, a proposed debt settlement which incorporates a cash repayment, the terming out of part of the liabilities, debt to equity conversion and waiver of debts that are no longer supported by assets, and the proposed liquidation of subsidiary companies that are no longer essential to the future operations of the SBGB Group."
I hope that will not turn into throwing good money after bad money.
Even before the huge write-off the company had already accumulated losses of RM 44 million, the total amount now is a stunning RM 344 million.
Announcements here, here and here.