KUALA LUMPUR — Oct. 9, 2019: Utusan Melayu (Malaysia) Berhad today closed shop after experiencing one financial problem after another especially since last year.
This follows the board of directors’ decision last Monday to place the company into creditors’ voluntary liquidation. It then appointed independent accounting and consulting firm UHY Advisory (KL) Sdn. Bhd. as interim liquidator.
“Utusan Melayu made a statutory declaration on Oct. 7 that the company cannot by reason of its liabilities continue its business.
“The meetings of the company and its creditors have been summoned on Nov. 6,” UHY Advisory (KL) said in a statement.
On August 30, the publisher of the country’s oldest Malay daily was delisted from Bursa Malaysia, with the last traded price of 5.5 sen. It was first listed on the Kuala Lumpur Stock Exchange in 1994.
In a circular for employees, executive chairman Datuk Abd. Aziz Sheikh Fadzir said Utusan Melayu had experienced critical business problems after May 2018.
He said the company had taken a variety of measures to put it in a stronger position including implementing a voluntary separation scheme and disposing assets to improve cash flow.
However, the daily circulation of Utusan Malaysia and Kosmo continued to decline, with the newspapers missing the advertising revenue target of RM4 million a month.
“Workers’ salaries were delayed and debts could not be paid on time. The company is now facing a variety of legal actions from creditors,” Aziz stated.
The last working day for employees is today while their final day of service is Oct. 31. — Bernama