KUALA LUMPUR: Ho Hup Construction Company
Bhd and its wholly-owned subsidiary Bukit Jalil Development Sdn Bhd (BJD) have defaulted on term loan facilities amounting to RM112.69 million.
In a filing with Bursa Malaysia today, Ho Hup said the companies had received a notice of demand dated April 17, 2025, from Rohamat and Ling, Advocates and Solicitors, acting for Insas Credit & Leasing Sdn Bhd (ICL) as to the term loan facilities and demand for the total outstanding sum of RM112.69 million, inclusive of all interests chargeable under the respective money lending agreements entered into between BJD and ICL to be repaid within 14 days of the date of the said notice.
"The facilities were granted by ICL to BJD, and Ho Hup is the guarantor for the facilities.
"Thus, the total amount outstanding represented 33.29 per cent of the net assets of RM338.48 million based on the latest audited financial statements for the financial year ended Dec 31, 2023,” it said.
Ho Hup said the default in payment arose due to the inability of Ho Hup and BJD to meet the repayment demand by ICL due to cash flow difficulties.
"The company plans to engage with ICL and other creditors on a debt restructuring proposal to regularise its financial position.
"The company shall be appointing an independent financial advisor to engage with the creditors for this purpose,” it said.
Ho Hup also said that the default in payment may lead to further legal action by ICL to recover the outstanding sum under the facilities; however, it will be commencing discussions with ICL on a settlement proposal. - Bernama
