Mirach Energy taking steps to wind up as uncertainty arises over exit offer

MAINBOARD-listed Mirach Energy on Wednesday said it is taking steps to wind up the company, as uncertainty has risen over whether an exit offer will proceed.

Certain shareholders had previously expressed their intention to collectively make an exit offer to all the other shareholders of the company, after Mirach Energy, failing to exit the Singapore Exchange's (SGX) watch-list, was notified by the bourse in September to delist. Mirach Energy was later given a three-month extension in October to submit an exit-offer proposal to SGX.

Now, Mirach Energy said it is obtaining quotes from legal advisers and liquidators for the costs as well as steps involved in the process of winding up.

The company also noted that it may face cash flow difficulties before the end of Q1 2021, due to expenses related to the exit offer and professional fees, on top of its usual operating expenses.

As at Nov 30, Mirach Energy had only US$333,000 in cash and cash equivalents.

In addition, a subsidiary, RCL Kelstar Sdn Bhd, has received an email request from one customer to terminate a cooperation agreement. Another unit, CPHL (HK) Limited, has received a notice of payment of RM4.5 million (S$1.5 million) from the RCL vendors.

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Mirach Energy said it is implementing various cost-cutting measures including not renewing the office lease and cutting executives' salaries. "The company is also in ongoing discussions with its subsidiaries on whether the subsidiaries are in a financial position to repatriate dividends," it added.