KUALA LUMPUR: Bintai Kinden Corporation Bhd's subsidiary Optimal Property Management Sdn Bhd (OPM) has accepted an interim settlement proposal (ISP) with Kolej Teknologi Islam Melaka Bhd (KTIMB) to settle the default and outstanding debts of RM58.6 million as of December 2023.
The agreement entails an immediate disbursement of RM1.5 million to OPM by January 30, 2024, and a series of six-monthly RM250,000 per month instalment totalling an additional RM1.5 million from January to June 2024.
As part of the ISP terms, KTIMB has agreed to work with and conclude a final settlement with OPM by May 31, 2024, by evaluating three options, namely the termination of the current concessionaire agreement (CA), a possible takeover of OPM by KTIMB or a designated entity at an agreed valuation or a restructuring of the outstanding CA-related debts and charges.
Bintai Kinden also announced that its shareholders had approved the proposed private placement of up to 281.5 million new ordinary shares, representing 30.0 per cent of the total issued shares at today's extraordinary general meeting (EGM).
Bintai Kinden managing director Datuk Tay Chor Han said today's EGM approval and the ISP with KTIMB are yet another significant development for the group.
"While the latter further validates the legitimacy of the CA by OPM, the shareholders' approval demonstrate the shareholders' trust in our direction.
"As the new management continues to steer the group forward, these steps are necessary in laying a solid foundation for Bintai Kinden's financial stability as well as future growth and stability," he said in a statement.
Bintai Kinden said it remains committed to engaging with all stakeholders to enhance its standing and deliver value to shareholders and stakeholders in the long term.