KUALA LUMPUR: Bintai Kinden Corp
Bhd said its wholly-owned subsidiary Optimal Property Management Sdn Bhd (OPM) has reached an agreement with Universiti Islam Melaka Bhd (UIMB) on an extended interim settlement proposal (EISP).
According to the group, the proposal entails a structured plan to repay OPM, and resolve outstanding obligations by UIPM, a fully owned subsidiary of the Melaka state government.
This comes after an acquisition proposal by UIPM for OPM was called off due to differences in valuation.
Under the EISP, UIMB has committed to a structured repayment plan amounting to RM13.5mil to be paid to OPM by June 30, 2026.
The payment schedule is spread over 21 installments, with UIMB committing to a minimum payment of RM5.2mil over the first four months starting from Oct 31, 2024.
The EISP also includes provisions for a complete restructuring of the availability charge rates by March 31, 2026, with a deadline of June 30, 2026, to finalise the restructuring terms.
Bintai Kinden highlighted that if no agreement is reached by that date, UIMB commits to making full payment of all arrears, which currently stand at RM64.02mil, on or before July 15, 2026.
Bintai Kinden managing director-cum-CEO Datuk Tay Chor Han said the committed minimum monthly payment plan will not only provide positive cash flow to the company but also significantly enhance its financial stability in the coming years.
"The structured repayments offer a reliable pathway for resolving outstanding amounts and allow both parties the necessary time to finalise terms that align with our mutual interests.
"This agreement ensures the operational continuity of the student accommodations managed by OPM, while also strengthening our overall financial position and supporting our efforts to uplift from PN17 status,” he added.
