Bintai Kinden agrees to RM58.6mil debt settlement with KTIMB

Bintai Kinden Corp Bhd managing director cum CEO Datuk Tay Chor Han

KUALA LUMPUR: Bintai Kinden Corp Bhd’s (BKCB) wholly-owned subsidiary, Optimal Property Management Sdn Bhd (OPM) has accepted an interim settlement proposal (ISP) with Kolej Teknologi Islam Melaka Bhd (KTIMB) with regards to the default and outstanding debts of RM58.6mil as of December 2023.

According to the mechanical and electrical (M&E) engineering services specialist, the agreement entailed an immediate disbursement of RM1.5mil to OPM by Jan 30, and a series of six-monthly RM250,000 per month instalment totalling an additional RM1.5mil 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 May 31, 2024, by evaluating three options, namely 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 in a statement.

Separately, BKCB has also obtained shareholder’s approval at its extraordinary general meeting (EGM) for the proposed private placement of up to 281.5 million new ordinary shares, amounting to 30.0% of the total issued shares.

“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 demonstrates 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,” managing director cum CEO Datuk Tay Chor Han said.