MARC has lifted the MARC Watch (with developing outlook) placed on Ambang Sentosa Sdn Bhd’s (ASSB) RM372 million and RM226 million Class C BaIDS/ABS Facility following the approval by bondholders to restructure the Class B and Class C BaIDS. MARC has on 8th June 2005 announced the downgrades (with a developing outlook) on ASSB’s Class B and Class C BaIDS from A+ID to AID and AID to A-ID respectively. The downgrades are premised on the construction delays experienced on the Taman Puncak Jalil development brought about by the repatriation of illegal foreign workers in the last quarter of 2004 which resulted in a significant reduction in total workforce up to the date of review; building material shortages, such as, steelbar and sand; and Federal Government’s concern over hill slope development in the second half of 2004. The construction delays have resulted in significantly lower progress receipts with the BaIDS redemption account recording a balance significantly lower than the original projections.

The restructuring involves the partial redemption of Class B BaIDS amounting to RM100.0 million; extending the remaining tenures of Class B and C BaIDS by another year; and substituting properties within the asset portfolio. The Facility Agent, Abrar Discounts Berhad has confirmed that RM100.0 million of Class B BaIDS has been redeemed on 28 July 2005. The restructuring enables ASSB to accumulate progress receipts from end-financiers as the originator, Maxisegar Sdn. Bhd. (Maxisegar) completes the construction works. IJM Construction Sdn. Bhd (IJM) was recently appointed as the construction manager for the Taman Puncak Jalil development.