KUALA LUMPUR: Shares in Bintai Kinden Corp
Bhd tumbled almost 42% in early trade Thursday, following news the company had slipped into Practice Note 17 (PN17) status.
The mechanical and electrical (M&E) engineering services specialist tumbled 41.67%, or 2.5 sen to 3.5 sen at 10.08am. It has fallen some 65% so far this year.
The PN17 classification came after MBSB Bank Bhd (MBSB) issued a notice of termination dated March 29, 2023, to Bintai Kinden as the corporate guarantor and its wholly-owned subsidiary, Optimal Property Management Sdn Bhd (OPM), as the borrower of the RM109mil in Islamic banking facilities in which the company and OPM have defaulted on.
In a statement, Bintai Kinden urged the Melaka state government to resolve payments outstanding to the company from the University Melaka (UNIMEL) project.
It said the failure in payment from UniMel has resulted in the default of an RM109mil Islamic financing facility.
Executive director Azri Azerai said: “We are being victimised into PN17 status because the Melaka government has not seen fit despite a series of meetings to take action to address the RM49.8mil owed to OPM by Kolej Teknologi Islam Melaka Bhd (KTIMB) for the construction of the UNIMEL student campus accommodation.”
“We have also sent various reminders to KTIMB as well as Melaka Chief Minister Incorporated on the matter. Let us be clear that despite non-payment or irregular payments by the parties, Bintai Kinden has been honouring its debt to MBSB and has paid RM18.6mil from March 2021 to December 2022 towards the financing facility despite collecting only RM3.7mil from KTIMB.”
KTIMB is the operator of UNIMEL, which had awarded a contract via a concession agreement to OPM in early 2016 valued at RM121mil to construct student accommodation for the campus.
