Bintai Kinden Seeks Amicable Solution After Mbsb Bank Sues Over Rm109mil Default

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Bintai Kinden Corporation’s share price has tumbled 50% over the last three weeks.PETALING JAYA: Bintai Kinden Corporation Bhd says it is seeking an “amicable settlement” with parties concerned after it was sued by MBSB Bank Bhd over its alleged default on a RM109 million Islamic financing facility secured to finance the construction of Kolej Teknologi Islam Melaka Bhd’s (KTIMB) in-campus accommodation.
In its filing with Bursa Malaysia yesterday, the group said MBSB Bank was claiming an outstanding amount of RM238.52 million as of April 6, 2023 under the facility obtained by its wholly-owned subsidiary Optimal Property Management Sdn Bhd (OPM) in 2018.
The suit was filed against OPM and Bintai, which stood as the corporate guarantor for the facility, which had since been terminated by MBSB Bank.
In addition, MBSB Bank is also claiming compensation charges of 1% per annum on RM107.54 million, calculated from April 7, 2023 until the date of judgment, or whichever is earlier.
The court had directed the respective parties to comply with the pre-trial directions within 14 days from receiving the writ of summons and statement of claim, with the first case management fixed on May 11.
“Bintai is sourcing for the appropriate review and negotiation with the parties involved in the concession arrangement with the objective of reaching amicable solutions to settle debts owing to MBSB including the Chief Melaka Incorporated (CMI), the guarantor of KTIMB for the repayment of the quarterly charges payable to OPM under the concession arrangement,” Bintai said in a new filing today.
The mechanical and electrical engineering services specialist does not expect any immediate impact on its financials and operational aspects considering its ongoing projects.
At the end of last month, the company announced it had fallen under the Practice Note 17 (PN17) classification following OPM’s financing facility default and Bintai’s termination by MBSB Bank as guarantor. The company also said it is in the process of formulating its regularisation plan to comply with the PN17 requirements.
Bintai executive director Azri Azerai had previously blamed the Melaka government for not taking action to address payments owed to the company from the Universiti Melaka (UniMel) project, resulting in the default of the facility.
He allleged the state government owed RM49.8 million through KTIMB, the operator of UniMel for the construction of its student campus accommodation.
More legal problems
In a separate filing yesterday, a writ of summons and statement of claim was filed by Axbena Sdn Bhd (Axbena) on another Bintai subsidiary – Johnson Medical International Sdn Bhd (JMI) – for liquidated ascertained damages (LAD) in respect to medical gas system sub-contractor works for Universiti Teknologi Mara’s (UiTM) teaching hospital in Puncak Alam, Kuala Selangor, for a total contract sum worth RM10.92 million.
Axbena is claiming a sum of RM26.8 million in LAD based on its certificate of payment dated Nov 15, 2022. The court has fixed case management for this suit on May 10.
At the close today, Bintai closed half-a-sen higher or 14.29% at 40 sen, giving it a market capitalisation of RM35.73 million.
Just three weeks ago, its shares stood at 80 sen each, and since then it has shaved off 50% of its value. - FMT

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