KUALA LUMPUR (May 15): Bintai Kinden Corp Bhd (KL:BINTAI) said Tenaga Nasional Bhd (TNB) (KL:TENAGA) has reinstated three of 10 contracts that the utility company had previously terminated two years ago, after a series of negotiations between them.

The reinstated contracts, executed by Bintai Kinden's wholly owned Kejuruteraan Bintai Kindenko Sdn Bhd (KBK), are related to defect clearance works at PMU 275kV/33kV Grik, the 132kV Subang Jaya GIS Switching Station, and the 132kV Kuchai Lama GIS Switching Station.

"The board wishes to update that this positive development is the result of a series of negotiations between KBK and TNB, aimed at reaching an amicable resolution to the contractual matters arising from the termination of 10 contracts by TNB on June 21, 2023 and July 13, 2023 respectively," Bintai Kinden said in a bourse filing on Thursday.

Further details on the settlement and its implications will be announced in due course upon receipt of the official documentation from TNB, it said.

TNB's terminations in 2023 were reported to be linked to Bintai Kinden’s financial difficulties, which arose after the suspension or withdrawal of its banking facilities.

Bintai Kinden's subsidiary, Optimal Property Management Sdn Bhd, had defaulted on RM109 million worth of loans from MBSB Bank Bhd for a student housing project. This led to Bintai Kinden being classified under Practice Note 17 for financially distressed companies in March 2023.

In January this year, Bursa Malaysia approved Bintai Kinden’s plan to regularise its condition, which involves a private placement of 244 million new shares that represent 20% of its issued share base to raise RM19.52 million for debt repayment and working capital.

The plan also includes the granting of an option to its managing director cum chief executive officer Datuk Tay Chor Han to take up up to 146.4 million new shares in the company, and the establishment of an employees' share options scheme involving up to 15% of the company’s issued shares.

Bintai Kinden has also announced plans to reduce its share capital by up to RM160 million and to strategically shift its focus towards the construction sector to broaden its income base.

Shares of Bintai Kinden closed unchanged at eight sen on Thursday, giving the mechanical and electrical engineering services provider a market capitalisation of RM117.1 million. The counter has fallen by over 11% year-to-date.