Kuala Lumpur: Malaysian Merchant Marine has admitted the company is insolvent after it defaulted on debt repayments. MMM said it was insolvent as a result of failing to pay RM40.3m in debt owed to Prima Uno Bhd and Malaysian Trustees Bhd after the banks demanded repayment within 14 days. "The company's existing credit facilities are insufficient to even meet the negative cashflow situation presently. As such, MMM now does not have the funds to continue to operate its business under the present capital and debt structure," the company said. Last week MMM laid-off all its staff after the collapse of a deal to acquire a 19,980 dwt double-hulled chemical tanker for $38m from Singapore's Uniships. The deal failed after MMM's existing debt was downgraded by Malaysian Rating Corp causing new credit facilities for the purchased of the chemical tanker to be withdrawn. [26/03/10]
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