Bintai Kinden Corporation Berhad is a Malaysia-based company that has recently been in the news due to its relationship with a controversial university, UNIMEL. This relationship has caused a financial burden for Bintai Kinden, leading to their current status as a PN17 company.

UNIMEL was established through a concession agreement with Bintai Kinden's subsidiary, Optimal Property Management Sdn Bhd (OPM), for construction and maintenance of student accommodation.

OPM took out a 17-year Islamic financing facility agreement from MBSB Bank Berhad to finance the UNIMEL campus. However, Kolej Teknologi Islam Melaka Berhad (KTIMB) and Melaka Chief Incorporated (CMI Melaka), the entities responsible for paying OPM for maintenance services, have not been paying their dues, leading to a legal dispute.

Bintai Kinden has been paying MBSB RM18.6 million, while only receiving RM3.7 million from KTIMB. The outstanding principal payable to MBSB is RM105,557,756.27, causing a significant financial burden for Bintai Kinden. In March 2023, Bintai Kinden fell into PN17 status after MBSB Bank Berhad issued a notice of termination to Bintai Kinden and OPM for the RM109.0 million.

Despite this setback, Bintai Kinden has a good track record of delivering jobs on time and has been awarded several projects, including a recent RM14.2 million contract by TNB. The company is working on a regularisation plan to be submitted to the Securities Commission (SC) and Bursa Securities, arguing that it is unfair for them to bear the financial burden of maintaining UNIMEL accommodation despite having a signed agreement with CMI.

Compared to a year before, Bintai Kinden had lost over 60% in market capitalization due to negligence of payment from the counterparty.

As an investors, I really would like to ask – who is responsible for the loss of my shares value in Bintai Kinden?