KUALA LUMPUR (July 13): Bintai Kinden Corp Bhd said Tenaga Nasional Bhd (TNB) had on Thursday (July 13) terminated two contracts awarded to its subsidiary Kejuruteraan Bintai Kindenko Sdn Bhd (KBK) due to KBK’s inability to continue performing the contractual obligations.
KBK is facing financial difficulties arising from its banking facilities being suspended or terminated by financial institutions, said Bintai Kinden in a bourse filing.
Based on prior filings, the two contracts were awarded in July and October 2018 and pertained to the establishment of a switching station and utilities, with a collective value of RM84.43 million.
Last month, Bintai announced that TNB had terminated eight other contracts with KBK for the same reason.
This latest development brings the total value of terminated contracts to RM213.23 million.
Bintai said the financial impact caused by the termination of these two contracts have yet to be determined and is subject to TNB's inspection of progress and assessment of the final account.
“Having considered all aspects, the board is of the opinion that the termination is in the best interest of KBK,” added the mechanical and electrical engineering services group.
Shares of Bintai closed half a sen or 6.25% lower at 7.5 sen, valuing the group at RM70.4 million.