KUALA LUMPUR: Bina Puri Holdings Bhd
has proposed a RM250 million share capital reduction to offset accumulated losses as part of a broader debt restructuring exercise involving RM343.98 million of outstanding liabilities.
The developer said the proposed share capital reduction entails the reduction of the company’s issued share capital via the cancellation of the company’s issued share capital of RM250 million.
"The corresponding credit of RM250 million arising from such cancellation will be used to set off the accumulated losses of the company.
"The remaining balance, if any, will be credited to the retained earnings of the company, which shall be used in a manner to be determined by the board at a later date and in the best interest of the company,” Bina Puri said in a filing to Bursa Malaysia today.
Bina Puri proposed a scheme of compromise and arrangement with creditors under Section 366 of the Companies Act to restructure outstanding liabilities amounting to RM343.98 million as at June 30, 2025.
The proposed scheme comprises a renounceable rights issue of up to 372.89 million new shares on the basis of two rights shares for every five existing shares held, together with up to 372.89 million free detachable Warrants C based on one warrant for each rights share subscribed.
It also includes the restructuring of RM126.58 million of outstanding liabilities into sustainable debt to be repaid over seven years.
In addition, RM88.06 million of debt will be settled through the issuance of up to 251.60 million settlement shares at an issue price of 35 sen per share, while RM28.55 million will be settled via the issuance of up to 81.57 million option shares, also priced at 35 sen each and subject to put and call options.
Another RM44.72 million of liabilities will be settled through the issuance of up to 127.76 million redeemable convertible unsecured Islamic debt securities at 35 sen each, while creditors have agreed to permanently and irrevocably waive RM34.40 million of debt.
Bina Puri said all components of the proposed scheme of arrangement are inter-conditional upon one another.
As at the latest practicable date, it has an issued share capital of RM366.32 million comprising 893.02 million Bina Puri Shares and an outstanding 3921 million warrants 2023/2028 expiring on April 17, 2028, with an exercise price of 20 sen per warrant (Warrants B). - Bernama
