Bintai Kinden reaches interim settlement with KTIMB

KUALA LUMPUR: Bintai Kinden Corporation Bhd on Monday announced that its wholly-owned subsidiary, Optimal Property Management Sdn Bhd (OPM), has accepted an interim settlement proposal (ISP) with Kolej Teknologi Islam Melaka Bhd (KTIMB).

This is concerning KTIMB’s default and outstanding debts of RM58.6 million as of December 2023, it said in a statement.

“This pivotal agreement entails an immediate disbursement of RM1.5 million to OPM by Jan 30, 2024, and a series of sixmonthly RM250,000 per month installment totalling an additional RM1.5 million from January to June 2024,” Bintai Kinden said.

Additionally, it said that 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.

In another development, Bintai Kinden announced that its shareholders today approved the proposed private placement of up to 281.5 million new ordinary shares, amounting to 30 per cent of the total issued shares at its extraordinary general meeting (EGM). “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 demonstrates the shareholders’ trust in our direction,” its managing director and chief executive officer Datuk Tay Chor Han said.