KUALA LUMPUR: CIMB Bank Bhd has withdrawn its support for the proposed scheme to restructure the Asia Petroleum Hub Sdn Bhd (APH)project.
Muhibbah Engineering (M) Bhd said on Tuesday its legal advisers were informed of the bank's decision to withdraw its support for the restructuring.
The restructuring was filed previously by the receiver and manager, PricewaterhouseCoopers, which was appointed by the bank.
"The company is currently evaluating various courses of action and solutions. Further development will be updated accordingly," it said.
In February this year, StarBiz reported Muhibbah Engineering was forced to take a hit of more than RM300mil in losses, arising from the project's chief promoter KIC Oil & Gas failure to pay for the construction contract it had been awarded for marine piling and jetty works.
APH, as the developer and operator, secured a RM1.4bil financing facility from CIMB in 2006 to build what was touted to be the world's largest fully-integrated bunkering terminal.
With a storage capacity of 924,000 cu m and a large trans-shipment facility with multiple jetties, it was to be located on a 40ha reclaimed island off Johor, north-west of Singapore.
However, disputes arose between the shareholders KIC and Seaport Terminal, which owns two of Johor's main ports including Tanjung Pelepas.
Despite those problems, CIMB went ahead to fund the project led by KIC.
But the latter's troubles deepened when the financial crisis in 2008 prompted the Government to shelve infrastructure works such as roads, water supply and power lines valued at roughly RM350mil.