Perak Corporation Bhd (Perak Corp) has announced that its 49%-owned associate, Suaconcept Pro Sdn Bhd, has defaulted on repayments under a project financing facility from Malaysia Debt Ventures Bhd (MDV), with total outstanding borrowings amounting to RM18.36 million as at June 30, 2026.
The default triggered MDV to terminate the financing facility and demand immediate repayment from Suaconcept, while Perak Corp, as corporate guarantor, has also been served with a demand for RM9.0 million, representing its 49% proportionate guarantee obligation.
Perak Corp said Suaconcept, formerly known as VC Telecoms Sdn Bhd, was unable to meet its repayment obligations under the facility, which was originally granted under a master financing agreement signed in September 2014.
On July 6, MDV, through its solicitors, issued a notice terminating the financing facility and recalled the entire outstanding debt of RM18.36 million from Suaconcept.
A day later, MDV also served Perak Corp with a notice demanding RM8.99 million under the corporate guarantee provided by the company in 2017.
Following discussions with the lender, Perak Corp submitted a proposed structured repayment plan to MDV on July 10.
The company said MDV has agreed to place its demand notice in abeyance for 30 days to facilitate further negotiations on a settlement.
Perak Corp stressed that the default is not expected to materially affect the group’s financial position or operations.
The company noted that Suaconcept is not a major associate and that it had already fully impaired its investment in the company in previous financial years.
Perak Corp also highlighted that it had entered into a share sale agreement (SSA) in May 2022 to dispose of its entire 49% stake in Suaconcept for RM12.5 million.
Despite the default, Perak Corp said implementation of its Practice Note 17 (PN17) regularisation plan remains on track and will not be affected.
