Bintai Kinden Corporation Berhad’s (BKCB) unit Optimal Property Management Sdn Bhd (OPM) has accepted an Interim Settlement Proposal (ISP) with Kolej Teknologi Islam Melaka Berhad (KTIMB) with regards to the default and outstanding debts of RM 58.6 million as of December 2023.
In a statement, BKCB said KTIMB has agreed to settling its debt by immediate disbursement of RM1.5 million to OPM by 30 January 2024, and a series of six-monthly RM 250,000 per month instalment totalling an additional RM1.5 million from January to June 2024.
“In addition, as part of the ISP terms, KTIMB has agreed to work with and conclude a final settlement with OPM by 31 May 2024.
“This is by evaluating three options; the termination of the current concessionaire agreement (CA); a possible takeover of OPM by KTIMB or a designated entity at an agreed valuation; or a restructuring of the outstanding CA-related debts and charges,” it said today (Jan 29).
The mechanical and electrical engineering services specialist, medical device manufacturer and facilities operator said the debt settlement agreement was achieved after months and protracted discussions.
On an unrelated note, BKCB also announced the approval by shareholders at today’s Extraordinary General Meeting (EGM) of the proposed private placement of up to 281.5 million new ordinary shares, amounting to 30% of the total issued shares
“This endorsement is a testament of the shareholders’ confidence in its strategic direction and management’s ability to steer BKCB towards growth and sustainability.”
BKCB managing director and chief executive officer Datuk Tay Chor Han expressed his enthusiasm, saying that today’s EGM approval and the ISP with KTIMB are yet another significant development for the BKCB group.
“While the latter further validates the legitimacy of the CA by OPM, the shareholders’ approval demonstrate the shareholders’ trust in our direction.
“As the new management continues to steer the BKCB group forward, these steps are necessary in laying a solid foundation for BKCB’s financial stability as well as future growth and stability,” Tay said.
He added BKCB remains committed to engage with all stakeholders to enhance the company’s standing and deliver value to shareholders and stakeholders in the long term.
