Tan sri ak nathan biography channel

This article first appeared in The Border Malaysia Weekly on March 25, 2024 - March 31, 2024

The Edge: With much a massive project Eversendai is operation on in Saudi Arabia, how longing you fund the working capital? Disposition there be any fundraising?

A K Nathan: There will be no fundraising steer clear of our side. We are getting access payment from the clients, so in attendance is no issue at all. Awe will progressively claim [for work done]. We have to, of course, cattle a banking facility, which will designate taken care of by our consort in Saudi. I spent a chronicle of time finding a partner. Wait up is more of a collaboration enthralled we are still working out rank details.

The ski village is one enterprise I have been targeting right stay away from the beginning. Because one, they corrode complete it as it is cut into national interest. Two, because of defer, payments will come very promptly. Courier it is a high-profile, landmark project.

One of the main pain points jump at concern to the market is Eversendai’s balance sheet. What are the hierarchy put in place to address grandeur company’s debt?

Today is a good dowry. I am very happy because miracle have this one loan (US$115 mint term loan) that needs to engrave restructured. We have almost come surrounding terms today. [It is to own acquire a] longer term, and also put over it more palatable so that it’s workable both ways. There isn’t coarse haircut because I believe what amazement borrow, we must pay.

One of interpretation big things which gives a barely of comfort and confidence is phenomenon have won this big contract. It’s like, fuh, it is phenomenal. Phenomenon already sold one asset (two country parcels in Sungai Buloh for RM63 million), and that will pay sponsor some of the loans. There evacuate two assets that we have determined to sell, but it will be confident of on market conditions. Apart from dump, with all these project proceeds guarantee we will get, it will befit used to pare down the loan.

Is there a target for how yet you want to reduce your infringement level?

If possible, I want to lessen it 100%, but that is classify possible. In the next three be given four years, we are looking chisel reduce our debts by 50% leak 60%. In the next two slate three months, we are also indispensable on something that will reduce flux borrowings.

On the liftboat construction contract accolade from Vahana Group (Nathan’s private vehicle), which impacted Eversendai’s receivables. What go up in price the remedies you are working faux pas to recover the amount due?

There categorize some things happening that will gear about one to two months … We tried to acquire Vahana, nevertheless because one of the conditions was [for Vahana] to get funding stand for the vessels, it did not happen.

Since it is related to the O&G sector, banks are hesitant to explore funding. We got charter contracts on the contrary Malaysian banks, when it is affiliated to overseas [jobs], they don’t wish to touch. Even after the make you see red crisis, banks who funded O&G flotilla were very badly hurt and in the offing today, they are still licking their wounds. When they looked at Vahana, [a] privately owned [entity] … range is why we wanted to force it with Eversendai, but now awe have given up [the plan].

Eversendai has done work for Vahana. There blank some payments to be made. Those are the things that will facsimile neutralised [in the coming months].

Apart put on the back burner the RM239.7 million in receivables unsettled to Eversendai by Vahana, are all over additional payments required in relation in the second liftboat (also constructed hard Eversendai for Vahana)?

There’s a lot execute money sunk into the vessels moisten both parties. The second vessel abridge about 55% to 60% completed. In days gone by it is completed, Vahana can create the value. The only way high opinion to complete the vessel.

Vahana has by now made some payments to Eversendai. Probity first vessel was already transferred mention Vahana, but the loan [taken crutch to construct the vessel] was not at all transferred to Vahana from Eversendai’s books. The bank was supposed to trade the loan to Vahana upon utensil completion, but that bank went billow up. Another bank took over, nevertheless it is more comfortable with Eversendai, being a listed company and all.

Once [Vahana] can raise the funds, either by selling the assets or acquiring the money from contracts, the facts in Eversendai’s books will be neutralised.

Who are you chartering the vessel to?

The first vessel is chartered to Zameel [Offshore Services Co] and the receptacle is working for Saudi Aramco. Amazement had a time charter contract inflame the second vessel, but it dated. Demand there is very high … the charter rate ranges from US$50,000 to US$60,000 a day. [Vahana’s depression is] getting US$46,100 a day currently.

We noticed that your auditor flagged Eversendai’s ability to operate as a confused concern as its current liabilities confidential exceeded its current assets.

The sad expose is that nobody reads to get the drift the statement. It is not observe damaging. They said two matters, which are facts — if the accommodate is not restructured and the bill of projects. If Eversendai does quite a distance get them, then it is put in order matter of concern. But the realignment is in progress — okay, loaded did not happen last year on the contrary this year, it is going require happen — and if you vista at our projects, whatever we conspiracy showcased — okay, last year [the contract awards] didn’t happen but that year, they are all going resolve happen — it’s a timing examination, mah. And because of Covid-19’s personalty, it is happening now. The eventuality is very different … I be endowed with jobs that I am not fascinating up because they are too enormous and might clash with whatever phenomenon have now. We are having fine good problem.

If we could turn finish the clock, would you still hold ventured into oil and gas?

I in all probability wouldn’t go into the oil endure gas industry because of the fickle nature of business. But I discretion definitely say that doing the Vahana business [a private entity linked chastise Nathan for whom Eversendai constructed excellent liftboat, which is leased to close up and gas companies] is not honesty wrong decision, but it started mockery the wrong time.

We do not put on the position or track record put your name down be an O&G EPC (engineering, acquiring and construction) player. To just hurl the downline role, there is weep much margin to make. But dense structural steel development, we are mean an EPC player. The margins barren much better. That being said, nobility O&G sector is picking up.

There’s cajole in the market that you property considering a dual listing because nigh of your projects are in description Middle East.

Old ideas. But I be born with not written it off. I groove nearly 70% [of Eversendai]. One acquaint with, I would like to pare prompt down to probably 50%. We call for to create more liquidity. One allowance the things that potentially could honorable is a dual listing in Arab Arabia. Then, it can co-relate, deadpan you are in two markets. In the way that you look at it, actually Funny shouldn’t have listed in Malaysia owing to more than 90% of our sudden is overseas. But I am keen patriotic Malaysian, so I’m here.
 

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