Wednesday 24 Apr 2024
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KUALA LUMPUR (March 29): Bintai Kinden Corp Bhd said it has been classified as a Practice Note 17 (PN17) issuer after its subsidiary defaulted on RM109 million worth of financing facilities.

This came after MBSB Bank Bhd terminated Bintai Kinden's role as the corporate guarantor for the RM109 million Islamic banking facilities granted to the group’s wholly-owned unit Optimal Property Management Sdn Bhd.

More specifically, the mechanical and electrical engineering services group triggered Paragraph 2.1(f) of PN17 of the Main Market Listing Requirements, which pertains to a default in payment by a listed issuer, its major subsidiary or major associated company, and is unable to provide a solvency declaration.

With its new financially distressed status, Bintai Kinden is to comply with PN17 obligations where it is required to, among others, submit a regularisation plan to the Securities Commission Malaysia or Bursa Securities within one year.

Non-compliance with PN17 obligations will permit Bursa Securities to suspend and de-list the trading of Bintai Kinden securities, the group said.

“As at [Wednesday, March 29], the company is taking necessary steps to address its PN17 status," Bintai Kinden said in a bourse filing.

"The company is in the midst of formulating a plan to regularise its financial condition and the announcement on the same shall be made in due course in compliance with the Main Market Listing Requirements,” the group added.

For the third quarter ended Dec 31, 2022, Bintai Kinden fell into the red with a net loss of RM2.89 million versus a net profit of RM1.41 million a year earlier, as costs of operations jumped 35.91% to RM5.08 million from RM3.74 million previously on the back of higher material and labour costs.

Bintai Kinden said the impairment of bad debts incurred during the quarter also bore down on its bottom-line.

Quarterly revenue fell 22.72% to RM22.36 million from RM28.93 million previously, due to lower revenue from the mechanical and electrical engineering segment.

As at end-Dec 2022, current borrowings stood at RM32.77 million, while non-current borrowings stood at RM102.33 million. Meanwhile, total current assets stood at RM127.13 million, and non-current assets were at RM282.03 million.

Shares in Bintai Kinden closed half a sen or 7.69% lower at six sen on Wednesday, giving the group a market capitalisation of RM53.59 million.

Edited ByS Kanagaraju
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