KUALA LUMPUR (Oct 16): Zetrix AI Bhd (KL:ZETRIX) faces potential sukuk payment obligations of RM2.16 billion if it fails to resolve a covenant breach by Oct 22, which could trigger a payment default.
In a reply to queries from Bursa Malaysia on Friday, the company said the breach arose after managing director Wong Thean Soon ceased to be its largest shareholder following forced share sales.
Wong’s combined direct and indirect shareholding fell from nearly 30% to 1.895% as at Oct 15, breaching a covenant under Zetrix’s RM2 billion sukuk wakalah programme that requires him to remain the company’s largest shareholder.
If the breach is not resolved by Oct 22, Zetrix said it will seek sukuk holders’ approval to waive the covenant or provide further instructions on how to proceed.
Without a waiver, a dissolution event could be triggered, allowing the sukuk trustee to demand immediate repayment of outstanding amounts.
According to Zetrix, its obligations comprise of RM164.5 million in future coupon payments and RM2 billion in principal.
Zetrix said it was still assessing the financial and operational impact of the breach and would announce any material developments.
The company’s shares fell 15.38%, or one sen, to 5.5 sen on Friday, after touching an intraday low of five sen — a level last seen 14 years ago. Nearly 255 million shares changed hands, more than double the previous day’s volume.
The sell-off since late August has wiped out more than 90% of Zetrix’s market capitalisation, which stood at RM444.3 million based on Friday’s closing price. The company had RM541.6 million in cash as at June 30, 2026.
The share disposals followed a series of margin calls involving Wong’s share-backed financing facilities. Wong previously told The Edge Malaysia that the disposals were not voluntary and that he was considering legal action over suspected collusion and share price manipulation.
MARC Ratings had also flagged the covenant breach and raised concerns about Zetrix’s transparency and corporate governance.
The company, which runs MyEG Sdn Bhd, is also under police investigation over its failure to remit RM230.9 million collected from customers as an agent of the Road Transport Department (JPJ). On Oct 8, Zetrix confirmed that it owed RM314 million in collections to JPJ that had yet to be remitted between May and September 2026.