Agreement ensures minimum monthly payments of RM5.2 million in the first four months and structured installments over three years
PETALING JAYA, 30 OCTOBER 2024 – Bintai Kinden Corporation Berhad ("BKCB" or the "Company"; Bursa: BINTAI, 6998), a mechanical and electrical (“M&E”) engineering services specialist, medical device manufacturer and facilities operator, today announced that its wholly-owned subsidiary, Optimal Property Management Sdn Bhd (“OPM”), has reached an agreement with Universiti Islam Melaka Berhad (“UIMB”) (formerly known as Kolej Teknologi Islam Melaka Berhad, or “KTIMB”) on an Extended Interim Settlement Proposal (“EISP”).
UIMB’s commitment under the EISP not only paves the path for an interim solution for the next 21 months but further reflects not only UIMB’s but also the State Government of Melaka’s commitment in honouring the terms and condition of the Concession Agreement post June 2026. The EISP reflects a structured plan to repay OPM, ensuring a clear road map to resolve outstanding obligations by the fully owned subsidiary of the State Government.
The EISP agreement follows a series of negotiations and announcements made between the parties on 29 December 2023, 29 January 2024, 17 April 2024, and 31 May 2024, during which OPM and UIMB initially explored a potential acquisition of OPM by UIMB. However, this acquisition proposal was called off due to differences in valuation. On 30 October 2024, UIMB confirmed its request for the EISP, extending the Interim Settlement Proposal (“ISP”) initially granted on 29 January 2024.
Under the EISP, UIMB has committed to a structured repayment plan amounting to RM13.5 million to be paid to OPM by 30 June 2026. The payment schedule is spread over 21 installments, with UIMB committing to a minimum payment of RM5.2 million over the first four months starting from 31 October 2024. The final payment date for all arrears is set for 15 July 2026, should the parties fail to agree on a restructured Availability Charge Rate by 31 March 2026. As of 29 October 2024, the arrears amount stands at RM64.02 million.
The EISP also includes provisions for a complete restructuring of the Availability Charge Rates by 31 March 2026, with a deadline of 30 June 2026 to finalise the restructuring terms. If no agreement is reached by that date, UIMB commits to making full payment of all arrears, which currently stand at RM64.02 million, on or before 15 July 2026.
Datuk Tay Chor Han, Managing Director cum CEO of BKCB, commented, “We are greatly encouraged by UIMB’s commitment under the Extended Interim Settlement Proposal to repay OPM with a clear and structured payment schedule. This committed minimum monthly payment plan will not only provide positive cash flow to the Company but also significantly enhance our 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.”
The Company had submitted the proposed regularization plan to Bursa Securities on 4 October 2024
This Extended Interim Settlement Proposal comes as part of Bintai Kinden’s continued efforts to uplift from its Practice Note 17 (PN17) status, which it entered in March 2023 due to financial challenges, mainly caused by the default of payments by UIMB. The Company remains focused on implementing its regularisation plan to address financial conditions, and agreements such as the EISP reflect its commitment to resolving outstanding issues and stabilising its financial position. BKCB remains dedicated to pursuing strategic measures that will contribute positively towards the Company’s recovery and long-term growth.
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