KUALA LUMPUR: Ho Hup Construction Company Bhd has defaulted on revolving credit facilities totalling RM45.27 million, prompting a legal action by AmBank Islamic Bhd (AIB).
In a Bursa Malaysia filing today, the company stated that it received a notice of demand and termination dated May 29, 2025, from Lee & Koh, acting for AIB, regarding the respective credit facilities, on June 4, 2025.
It said the outstanding amount represents 13.37 per cent of Ho Hup’s net assets of RM338.48 million based on audited results for the financial year ended Dec 31, 2023, and 31.97 per cent of its latest reported net assets of RM141.60 million.
"The default in payment arose due to the failure of the company to pay the instalment payments on the principal and interest due to cashflow difficulties,” it said.
On April 18, 2025, the company was classified as a Practice Note 17 listed issuer and is currently under the restraining order.
"The company plans to engage with AIB and other creditors on a debt restructuring proposal to regularise its financial position.
"The company has appointed an independent financial advisor to engage with the creditors for this purpose,” it added. - Bernama
