Ramunia: Getting Out of Debt through Crucial Sale to Sime Darby

Technically, Ramunia defaulted and was placed under P17 status. The shares went down below 20 sen. Since then, it has gone back to its pre-fall price. The price ascent is partly fueled by news that the shipyard sale is ready for proper execution now that it is no longer conditional. Hopefully, debtors will start renegotiating with Ramunia instead of going through the ardous court route to get their money back.

 
Let is read the annoucnement on this from K&N Kenanga, the mouthpiece for Ramunia.

"RAMUNIA HOLDINGS BERHAD (“RAHB” OR THE “COMPANY”)

PROPOSED DISPOSAL OF THE TELUK RAMUNIA FABRICATION YARD TOGETHER WITH ALL MOVEABLE AND IMMOVABLE ASSETS LOCATED THEREON TO SIME DARBY ENGINEERING SDN BHD (“SDE”) FOR A FINAL DISPOSAL CONSIDERATION OF RM530 MILLION TO BE SATISFIED ENTIRELY BY CASH (“PROPOSED DISPOSAL”)

Contents:  
   
We refer to the announcements dated 3 August 2009, 24 August 2009, 3 September 2009 and 3 February 2010.

On behalf of RAHB, Kenanga Investment Bank Berhad is pleased to announce that all of the conditions precedent to the definitive sale and purchase agreement dated 3 August 2009 (“SPA”) entered into between RAHB, Ramunia Optima Sdn Bhd and SDE (collectively referred to as the “Parties”) have been fulfilled.

Pursuant thereto, the SPA is now unconditional and the Parties will proceed to take the necessary actions to complete the Proposed Disposal.

This announcement is dated 5 April 2010."

As Ramunia has about 8 more months to go before submitting a corporate reconstruction scheme to Bursa to get itself off the insidious PN17 label,there are parties rumours to be in discussion with it to bring about a brand new Ramunia into being.

Time will tell.