FRESH from suffering a bond default, KNM Group Bhd has a lot of cleaning to do in order to put its business back on track.
The group is in the midst of a liquidity crisis with its current liabilities exceeding its current assets, a situation that has prolonged since 2020.
KNM is also in need of cash to meet its obligations, especially with a debt of RM1.28bil on its books as at Sept 30.
In comparison, its cash holding stood at just about RM258mil. Almost RM706.6mil or 55% of this debt is short-term in nature.
Amid lower production output and a slow order replenishment that have affected KNM’s revenue, the higher interest paid on borrowings is also causing the group to bleed.
In the first nine months ended Sept 30, the group recorded a finance cost of RM79.2mil, exceeding the operational profit…
