KUALA LUMPUR, Oct 9 — Utusan Melayu (Malaysia) Bhd has ceased operations today after experiencing financial difficulties.
Utusan Melayu’s board of directors placed the company into creditors’ voluntary liquidation on Oct 7.
It has 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 here.
On Aug 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 sent out to its employees, executive chairman Datuk Abd Aziz Sheikh Fadzir said Utusan Melayu 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 of assets to improve cash flow.
However, 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,” Abd Aziz noted.
Utusan Melayu’s employees’ last working day is today while their final day of service will be Oct 31.