Wednesday, Mar 24, 2004
In February 2004, MARC had placed the rating of KLSSB’s Tranche 1 BaIDS of RM91 million (original limit: RM120 million) of A-ID on MARCWatch with developing implications, reflecting MARC’s concerns over KLSSB’s ability to collect the remaining billings of RM125 million from Promising Quality Sdn Bhd (PQSB) for Lot G at KL Sentral, which would be the main source of repayment for the Tranche 1 BaIDS due on 2 April 2004.
In March 2004, UDA Holdings Berhad (UDA) announced that the Foreign Investment Committee had approved UDA’s proposed subscription of 15,000,000 new ordinary shares of RM1.00 each in PQSB for RM15.0 million, representing approximately 100% of the enlarged share capital of PQSB. The said shares subscription by UDA will enable it to ultimately own Lot G. Consequently, upon completion of the Subscription Agreement, UDA will be providing the required loans (“Advance”) for PQSB to settle the balance billings owing to KLSSB to complete the Lot G acquisition. UDA will seek its shareholder’s approval for the above-mentioned share subscription and Advance on the 29 March 2004. MARC will continue to monitor developments and assess their impact on the rating.
In March 2004, UDA Holdings Berhad (UDA) announced that the Foreign Investment Committee had approved UDA’s proposed subscription of 15,000,000 new ordinary shares of RM1.00 each in PQSB for RM15.0 million, representing approximately 100% of the enlarged share capital of PQSB. The said shares subscription by UDA will enable it to ultimately own Lot G. Consequently, upon completion of the Subscription Agreement, UDA will be providing the required loans (“Advance”) for PQSB to settle the balance billings owing to KLSSB to complete the Lot G acquisition. UDA will seek its shareholder’s approval for the above-mentioned share subscription and Advance on the 29 March 2004. MARC will continue to monitor developments and assess their impact on the rating.