YNH Property Berhad clarifies on MARC Ratings report on its technical default over its bond to the company’s bondholders.
This stems from the ratings agencies extended placement of YNH under negative for the property developer Islamic Medium-Term Notes Programme (Sukuk Wakalah) following a rating downgrade to BBB-IS. The rating was at BBB+IS when it was first placed on negative watch on January 18, 2024. MARC said the rating action reflected its heightened concerns on YNH’s continued weak financial position, the lack of meaningful earnings visibility, and the protracted delays in asset disposals.
However, YNH today seek to clarify among other in relation to the company’s technical defaults, mall sale proceeds, bond collateral and appointment of new Auditor.
The developer said it has successfully remedied the technical default with the balance for the second monthly payment due 26 th April 2024 had been met by topping up the fund in the SPA Account. The Company also reassured that it will maintain compliance to prevent further technical defaults.
The company’s sale of Kiara 163 Retail Park is currently in its final stages and is pending shareholders’ approval at the upcoming Extraordinary General Meeting (EGM).The transaction is scheduled to compete by June 2024. According to YNH, this transaction aligns with its commitment to maximising the value of its assets while ensuring the long-term sustainability of its business operations.
In addition, it has reaffirmed that the bond collateral information provided in the memorandum is accurate as it is based on independent valuations conducted by Jones Lang Wootton. To date, there have been no material changes to the bond
collateral information.
The company has also announced the appointed Morison LC PLT as the external auditor.
