KUALA LUMPUR (Nov 6): MARC Ratings has downgraded Zetrix AI Bhd's (KL:ZETRIX) RM2 billion sukuk programme to a default rating of D-IS after the tech company failed to settle a RM25 million obligation due on Friday.
The rating agency previously downgraded the sukuk to C-IS on Oct 30.
"Accordingly, MARC Ratings will no longer provide analytical coverage on Zetrix AI," it said in a statement.
Zetrix AI told Bursa Malaysia on Oct 29 that a dissolution event under its sukuk programme had been triggered following a breach of a covenant requiring managing director Wong Thean Soon, or better known as TS Wong, to remain the company's largest shareholder.
The breach remained unresolved after an Oct 23 meeting with sukukholders, mainly comprising fund managers and banks, failed to reach an agreement.
However, the company said at the time that it was not required to immediately repay the outstanding sukuk amount, with its next scheduled payment of RM214 million only due in March 2027.
The group said it would call for another sukukholders' meeting, but has yet to announce a date.
Wong's stake in the company has shrunk from nearly 30% to just 1.84% following forced share sales triggered by margin calls amid a sharp decline in Zetrix AI's share price since late August, which has wiped out more than 90% of the group's market value.
Zetrix AI established the sukuk programme in 2022 and issued three-year Islamic debt papers in several tranches.
The Edge Weekly reported that funds managed by AmanahRaya Investment Management (ARIM), a subsidiary of government-linked Amanah Raya Malaysia, hold a substantial portion of the sukuk.
ARIM confirmed that three of its funds collectively hold less than 30% of the sukuk, implying an exposure of more than RM500 million but less than RM600 million.
Other fixed-income funds also hold Zetrix AI's sukuk, although their individual exposures are generally below RM10 million.
Zetrix AI is also grappling with other cash flow pressures and legal troubles.
The company and its subsidiary, MyEG Sdn Bhd, were suspended as Road Transport Department (JPJ) collection agents after failing to remit RM314 million collected on behalf of the government. MyEG has also been hit with an additional RM353.13 million tax bill.
Zetrix AI has also repeatedly delayed payment of its final dividend for the financial year ended Dec 31, 2025 (FY2025), since September.
Earlier on Friday, Bursa Malaysia Securities directed Zetrix AI to complete the outstanding dividend payments by Nov 23 and disclose material information concerning its financial condition.
Read also:
Bursa directs Zetrix to pay FY2025 final dividend by Nov 23, disclose info on financial condition
Zetrix AI’s MyEG unit hit with RM353.13 mil tax bill, govt files suit
Zetrix AI sukukholders fail to reach deal, new meeting planned
Zetrix AI tells Bursa dissolution event for RM2 bil sukuk triggered but no immediate repayment of RM2.16 bil required