SMPC CORP - the iron and steel processing company understructuring expects to turnaround in 2009 after its debts have been reduced.

SMPC Executive Chairman - MACHENDRAN said the restructuring exercise would reduce its debts from RM113m to RM30m, with another RM18.1m converted to loan stocks. After the exercise, SMPC's PUC Of RM64.64m will be reduced by 80% to RM12.9 million.

MACHENDRAN was reported in THE EDGE on Jul 9, 2008 hoping to raise another RM33m via a Rights Issue of up to 71.62m shares of RM1 each at an Issue Price of RM1 per share on the basis of 18 rights shares for every seven SMPC shares held after the capital reduction and consolidation.

The Company is also proposing an ICULS of up to RM11.14m 5% 10-year ICULS of 10 sen each on the basis of RM2.80 ICULS for every seven SMPC shares, with up to 15.92m free warrants on the basis of four free warrants for every RM2.80 ICULS subscribed.

The Company expects to complete the corporate exercise by Jul 2009 which will help us move forward with less financial baggage and a new business model which will be high margin and low volume.
" .... SMPC is looking at expanding in the automobile hubs of Pune and Delhi in India after the completion the corporate restructuring exercise. We are undertaking this expansion due to our success with our first plant in Chennai set up in 2006 ...." MACHENDRAN.(By KLSETRACKER.com)