KUALA LUMPUR: Bintai Kinden Corp Bhd's wholly-owned subsidiary Optimal Property Management Sdn Bhd (OPM) has reached an agreement with Universiti Islam Melaka Bhd (UIMB) on an extended interim settlement proposal (EISP).
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.
Under the EISP, Bintai Kinden said UIMB has committed to a structured repayment plan amounting to RM13.5 million to be paid to OPM by June 30, 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 Oct 31, 2024.
"The final payment date for all arrears is set for July 15, 2026, should the parties fail to agree on a restructured Availability Charge Rate by March 31, 2026.
"As of October 29, 2024, the arrears amount stands at RM64.02 million," it said.
Bintai Kinden said the EISP also includes provisions for a complete restructuring of the availability charge rates Availability by March 31, 2026, with a deadline of June 30 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 July 15, 2026." it said.
Bintai Kinden managing director Datuk Tay Chor Han said the company is greatly encouraged by UIMB's commitment under the EISP to repay OPM with a clear and structured payment schedule.
The committed minimum monthly payment plan will not only provide positive cash flow to the company but also significantly enhance its 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," he added.