AGNI INC is on fire but the 'Fat Chicken' is hiding

>> Friday, August 21, 2009

Agni placed under receivership
Move follows default on 15m euro loan


Published August 17, 2009

RECEIVERS and managers (R&M) have been appointed for Singapore-based alternative renewal energy firm Agni Inc and its fully- owned Malaysian subsidiary Agni Energie following the former's default on a loan.

KPMG was appointed the R&M for both the companies after Agni defaulted on a loan of 15 million euros (S$30.9 million) from UK-based Bond Capital Partners (BCP). KPMG Singapore is the R&M for Agni Inc and KPMG Malaysia, for Agni Energie, an Agni creditor told BT.

Worrying signs that the family-owned business was in trouble emerged in June when Agni Energie abruptly laid off staff at its 100,000 square foot factory in Shah Alam, Selangor.

According to news reports, some 100 employees were given short notice of termination. The plant has since been closed.

Staff at Agni's Singapore office could not be reached and BT is given to understand that following the termination of the lease, the company had moved out.

BCP's corporate website states that it helps provide late-stage structured finance investments in mid-market enterprises that are planning a realisation event within 36 months, either through a listing, trade sale or recapitalisation. It lists Agni as one of its portfolio companies.

Whether the company's financials were affected because of the financial maelstrom is unclear, but in November Agni still claimed an order book in excess of RM600 million (S$246.2 million) in its media releases. (BIG LIE!) Attempts to contact its Malaysian chief executive Sri Mohanalingham proved unsuccessful. (FAT CHICKEN IS HIDING!)

An electrical engineer with 12 years experience as a banker, Mr Mohanalingham had planned to raise financing in January by the issue of Islamic debt papers for expansion purposes.

In an interview with a local newspaper, he said that Agni was targeting to raise some RM900-plus million in two tranches, but would test the market appetite with an initial RM255 million.

He had expressed confidence in the take-up, perhaps banking on Agni's niche as a designer and manufacturer of renewal energy technology to find takers.

The launch of the second tranche of RM600 million was planned for the second or third quarter.

An Agni supplier who has been unpaid for more than six months told BT the company had informed him that he would be paid once the bond issue was completed. (LYING TO SUPPLIERS!)

KPMG has since told him his chances of being paid are 'bleak' because he is an unsecured creditor.

Agni Inc had also proposed a reverse takeover of listed Netelusion at the end of last year in a deal worth US$236 million. However, the proposal, which was to see Agni injected into Netelusion in return for new shares in the loss-making online gaming firm, has since lapsed.

How Agni's operations in Portugal, Spain, the UK and US are faring remain unclear. According to reports, the company acquired US-based GenCell Corp - a molten-carbonate fuel cell developer and manufacturer - in January to complement its business.

Agni Energie appeared to be gaining business, in November announcing the construction of Malaysia's first biomass-to-energy plant. The 10MW plant was to be sited in Bera, Pahang, and would use empty palm oil bunches as feedstock.

Earlier this year, it said that it had been awarded the engineering procurement and commission turnkey contract by a local company to build a 12MW plant in Sarawak.



Anonymous August 23, 2009 at 6:47 PM  

KPMG, please release our salaries 1 st,

we all suffering.....

its our money pleaze!!!!!!!!!!!

Anonymous August 31, 2009 at 10:47 PM  

Guys, I feel sorry for all of you. I was called for an interview at Agni sometime last year. I was surprised how unprofessional the whole set-up was. First of all you had remove your shoes. Than you have Hindu deities pictures around. Is it a temple or office? I am a Hindu but this looked silly. Second the interview was done by Michael. He does not even have my CV. I have to give my copy. I was called for second interview but I rejected though they offered 30% more than my current salary. But somethings do not fall in place. First I doubt their business. It is not viable. I am an engineer and their technologies are not something new. Second all of sudden they were employing in hundreds. Crazy am I right? Third I checked around and heard some bad things about them especially their management.My advise is always do your homework before joining a new company especially untested companies like Agni.Anyway guys the economy is getting better and I wish all of you the best.

Super Mega Termination Event - 12th June 2009


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