KUALA LUMPUR (Oct 23): Zetrix AI Bhd (KL:ZETRIX) said it will hold another sukukholders’ meeting after parties failed to reach a deal on Friday to address a covenant breach involving its RM2 billion sukuk by the deadline.
In a bourse filing, the group said the date of the next meeting has yet to be set.
“There was no resolution achieved by all parties during the sukukholders' meeting (on Friday). The company will arrange for a subsequent sukukholders' meeting to be held on a date to be determined later,” it said, adding that further announcements would be made in due course.
The meeting was called to discuss a proposed resolution to the sukuk covenant breach involving managing director Wong Thean Soon’s shareholding in the company. The breach arose after forced share sales triggered by margin calls on Wong’s share-backed financing facilities caused him to lose his position as Zetrix AI’s largest shareholder. His stake fell to 1.841% from nearly 30% in August.
The group had until Oct 22 to rectify the breach, which had not triggered a payment default at the time.
Zetrix AI had said it would seek a waiver or further instructions from sukukholders if the breach remained unresolved by Oct 22. Without a waiver, a dissolution event could be triggered, allowing the trustee to demand immediate repayment of the outstanding sukuk.
The group’s total obligations under the sukuk comprise RM2 billion in principal and RM164.5 million in future coupon payments.
The Edge Weekly reported that funds managed by AmanahRaya Investment Management (ARIM), a subsidiary of government-linked Amanah Raya Malaysia, hold a substantial portion of the sukuk. ARIM confirmed that three of its funds collectively hold less than 30% of the bonds, implying an exposure of more than RM500 million but less than RM600 million.
Other fixed-income funds also hold Zetrix AI bonds, although their individual exposures are generally below RM10 million.
Zetrix AI is facing cash flow pressures as it grapples with RM314 million in outstanding collections owed to the Road Transport Department (JPJ).
On Oct 19, the group cancelled its first interim dividend of 0.25 sen per share for FY2026 to preserve working capital amid unexpected operating expenses. The move is expected to save about RM20 million. Zetrix AI had RM541.6 million in cash as at June 30, 2026.
The outstanding collections led to the suspension of Zetrix AI and its subsidiary MyEG Sdn Bhd as JPJ collection agents from Oct 5.
Transport Minister Anthony Loke Siew Fook said the companies would not be reinstated until the outstanding amount is settled. Any reinstatement would also be subject to additional conditions, including direct payments into the government’s account.
In a separate filing with the bourse, Zetrix AI said its executive chairman of 20 years Datuk Dr Norraesah Mohamad, 78, has been redesignated as a non-independent and non-executive chairman. She holds a 0.449% interest in the company.
Zetrix AI is scheduled to release its financial results for the third quarter ended Sept 30, 2026 on Nov 27, 2026.
Shares of Zetrix AI climbed 50% or 2.5 sen to 7.5 sen on Friday, giving the company a market capitalisation of RM605.9 million.
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