KUALA LUMPUR: A group of planters and stakeholders in the East West One Group (EWOG) schemes urgently calls on Pacific Trustees Bhd (PTB) to release the funds necessary for the company’s approved rehabilitation and restructuring (R&R) exercise.
The majority of EWOG’s investors, represented by Thirunavukarasu Illamurugan, Yong Chin Koi, and Mahadevan Kathirgamathamby, are concerned that PTB’s continued withholding of these funds could further damage the company’s financial health, potentially leading to irreversible losses.
To recap, EWOG obtained planters’ approval of the company’s R&R exercise across all three schemes: East West One Planter’s Scheme (EWOP), East West Horizon Planter’s Scheme, and East-West Planter Scheme 1.
EWOG, in a statement, said the past few years have seen significant challenges that have severely impacted plantation operations, including the global Covid-19 pandemic, La Niña weather phenomena, industry-wide labour shortages, land disputes with landowners, and repeated injunctions that prevented timely convening of planters’ meetings from addressing these issues.
These cumulative challenges have compounded the company’s cash flow problems, resulting in an inability to meet payment obligations.
According to a statement by EWOG, despite the overwhelming support for the R&R plan from planters and stakeholders at the August 12 Planters’ Meeting, critical rehabilitation work on EWOG’s plantation assets remains stalled due to this delay.
For over a year, the plantation palms have relied solely on natural soil fertility, with no structured fertilisation or agronomic practices.
Prompt initiation of the R&R program is essential to restoring the plantation’s productivity.
This program leverages enhanced agronomic practices and inputs to increase fresh fruit bunch (FFB) production.
With crude palm oil (CPO) prices currently above RM4,000 per ton and projected to hold through 2025, the company has a unique window to capitalise on these favourable market conditions.
Proceeds from FFB sales could also partially offset ongoing rehabilitation costs, creating a sustainable pathway to recovery.
“Every day of delay further impacts our ability to restore the plantation and diminishes potential returns for all investors,” said Thirunavukarasu in the statement.
“These funds, specifically held in trust for the plantation’s rehabilitation, need to be released without further delay,“ he said in the statement.
According to a recent court filing by East West Horizon Plantation Bhd, the management continues to face challenges due to PTB’s reluctance to finalise necessary trust deeds despite ongoing efforts from EWOG’s management and legal team.
This impasse prevents the release of funds crucial for the R&R efforts, posing increased risks to the plantation assets and investor returns.
The investors’ representatives stressed that “a swift resolution is essential to launch the rehabilitation efforts and generate returns for all stakeholders.”
“It is time to move past the standstill and allow the EWOG group to implement the R&R plan for the benefit of all involved.”
