Sunday 14 Apr 2024
main news image

KUALA LUMPUR (April 10): Bintai Kinden Corp Bhd said the group is being sued by MBSB Bank Bhd for allegedly defaulting on a RM109 million Islamic financing facility.

The bank is claiming an outstanding amount of RM238.52 million up to April 6, the group said in a Bursa Malaysia filing.

MBSB is also claiming compensation charges of 1% per annum on the amount of RM107.54 million calculated from April 7 until the date of judgement.

“The court has directed the parties to comply with pretrial directions within 14 days from receiving the writ of summons and statement of claims, and fixed the first case management on May 11,” Bintai Kinden said.

The financing facility was secured by Bintai Kinden's wholly owned subsidiary, Optimal Property Management Sdn Bhd, to finance the construction of an in-campus accommodation for Kolej Teknologi Islam Melaka Bhd.

It was obtained in 2018 in accordance with a concession arrangement of 25 years, with Bintai Kinden as the corporate guarantor.

Last month, Bintai Kinden said it has been classified as a Practice Note 17 issuer following Optimal Property's default on the financing facility and the group’s termination by MBSB as the corporate guarantor.

In a second announcement on Monday (April 10), Bintai Kinden said its sub-subsidiary Johnson Medical International Sdn Bhd is facing a lawsuit from Axbena Sdn Bhd for liquidated ascertained damages (LAD) in respect of sub-contractor works for the medical gas system to a RM10.92 million project to build infrastructure and building works for Universiti Teknologi Mara's teaching hospital.

Bintai Kinden said Axbena is claiming RM26.81 million for the LAD based on the certificate of payment dated Nov 15, 2022.

For this case, the court has fixed May 10 for case management.

Bintai Kinden had acquired Johnson Medical for RM50 million to expand its healthcare business segment. Established in 1994, Johnson Medical is a medical engineering solutions provider focused on the manufacturing, supply and installation of operating theatres, critical care units and medical gas delivery systems and trading of medical equipment and supplies.

Shares in Bintai Kinden slipped half a sen or 12.5% to close at 3.5 sen on Monday, giving the group a market capitalisation of about RM31.3 million. The counter has dropped 56.25% over the past three weeks.

Edited ByS Kanagaraju
      Text Size