Bintai Kinden Corporation Bhd (BKCB) has signed a financial agreement with MBSB Bank Bhd, which entailed a Conditional Relief Indulgence (CRI) for its wholly-owned subsidiary, Optimal Property Management Sdn Bhd (OPMSB).
With the agreement, MBSB has agreed to drop lawsuit against OPMSB while a counterclaim suit against the former will also be withdrawn.
“This CRI is a break-through development in BKCB’s journey towards financial stability and legal clarity,” it said in a statement today (Dec 29).
Under the salient terms of the CRI, it said OPMSB has repaid RM3 million to MBSB today, and will receive a six months indulgence relief period with RM 500,000 monthly loan repayment.
“More critically is the withdrawal of legal suit by the bank against OPMSB and the company, as well as OPMSB and the company to withdraw their counterclaim against the bank, with liberty to file afresh and no order as to costs by Jan 10, 2024.
“Effectively, post Jan 10, 2024, there will be no more legal suit against BKCB Group by any of its current banking partners.
“This new-found legal clarity is a vital step in solidifying BKCB group’s financial base and allows for a more focused approach towards revitalising the company’s business sustainably,” it added.
BKCB was reportedly sued by MBSB in April 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.
The group had said that MBSB Bank was claiming an outstanding amount of RM238.52 million as of April 6, 2023 under the facility obtained by OPMSB in 2018.
BKCB managing director cum chief executive officer Datuk Tay Chor Han expressed his gratitude to MBSB Bank, saying the group deeply appreciates the confidence the bank has shown to him and his new management team, as well as the direction it took.
“By agreeing to the terms of the CRI dated Dec 28, 2023, we look forward to the withdrawal of MBSB’s legal suit against both BKCB and our OPMSB by Jan 10, 2024.
“This is a major break-through for BKCB group as it means post this date, there will be no more legal suit against BKCB group by any of its current banking partners,” Tay said.
He added: “This CRI definitely invigorated my team and I with a renewed sense of optimism. The BKCB group has been actively developing existing businesses and are now even more energized to pursue new business opportunities with the support of our current and potential new bankers.
“The 6-months indulgence period granted by MBSB allows both parties time to deepen our rapport as well as to deal with OPM’s sole debtor which is KTIMB.”
Tay added the debtor (KTIMB) is a 100% state-owned entity, limited by Melaka state’s guarantee.
“Despite OPM performing its obligations under the Concession Agreement awarded by KTIMB, the latter has been an extremely poor paymaster of its overdue debts, which had placed an extreme financial strain on the BKCB group’s financial.”
