Monday 22 Apr 2024
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KUALA LUMPUR (April 11): Bintai Kinden Corp Bhd said the group is working towards reaching an amicable solution after the company was sued by MBSB Bank Bhd for allegedly defaulting on a RM109 million Islamic financing facility.

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

In an exchange filing on Tuesday (April 11), the Bintai said it is sourcing for the appropriate review and negotiation with the parties involved in the concession arrangement to reach amicable solutions to settle debts owing to MBSB.  

The parties involved include the Chief Melaka Incorporated (CMI), the guarantor of Kolej Teknologi Islam Melaka Bhd, for the repayment of the quarterly charges payable to OPM under the concession arrangement, the company stated.   

Bintai added it does not expect any immediate impact on its financial and operational aspects, considering its ongoing projects and the progress of formulating its regularisation plan to comply with the requirements of Practice Note 17 of the Main Market Listing Requirements of Bursa Malaysia Securities Bhd.  

On April 10, MBSB claimed an outstanding amount of RM238.52 million over Bintai’s loan default, Bursa filings showed.  

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 financing facility 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.  

Shares in Bintai Kinden rose half a sen or 14.3% to close at 4 sen on Tuesday, giving the group a market capitalisation of about RM35.73 million.

Edited ByIsabelle Francis
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