Wednesday, Feb 18, 2004
MARC has placed the rating of KLSSB’s Tranche 1 BaIDS of RM91 million (original limit: RM120 million) of A-ID on MARCWarch 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 crucial for the repayment of the Tranche 1 BaIDS.
On 21 October 2003, UDA Holdings Berhad (UDA) had entered into a Subscription Agreement with Harmonic Fairway Sdn Bhd, Malaysian Resources Corporation Berhad (MRCB) and PQSB to subscribe for the issuance of new 15,000,000 ordinary shares of RM1.00 each of 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. The above share subscription and Advance are pending the approvals of the relevant authorities and shareholders of UDA. MARC will continue to monitor developments and access their impact on the rating, if any.
In 2003, the BaIDSholders’ had approved the deferment of KLSSB’s repayment of RM91 million of the face value of Tranche 1, due on 4 April 2003 to a date falling six months thereafter with an option to further defer such repayment by another six months, i.e. 4 April 2004 (KLSSB had made partial repayment for the remaining RM29 million on 4 April 2003).
In the meantime, the ratings for tranches 2A, 2B, 3, 4A & 4B BaIDS totalling RM800 million remain unchanged at AID(s), reflecting the support provided by Bank Pembangunan & Infrastruktur Malaysia Berhad by way of a standby revolving credit facility.
On 21 October 2003, UDA Holdings Berhad (UDA) had entered into a Subscription Agreement with Harmonic Fairway Sdn Bhd, Malaysian Resources Corporation Berhad (MRCB) and PQSB to subscribe for the issuance of new 15,000,000 ordinary shares of RM1.00 each of 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. The above share subscription and Advance are pending the approvals of the relevant authorities and shareholders of UDA. MARC will continue to monitor developments and access their impact on the rating, if any.
In 2003, the BaIDSholders’ had approved the deferment of KLSSB’s repayment of RM91 million of the face value of Tranche 1, due on 4 April 2003 to a date falling six months thereafter with an option to further defer such repayment by another six months, i.e. 4 April 2004 (KLSSB had made partial repayment for the remaining RM29 million on 4 April 2003).
In the meantime, the ratings for tranches 2A, 2B, 3, 4A & 4B BaIDS totalling RM800 million remain unchanged at AID(s), reflecting the support provided by Bank Pembangunan & Infrastruktur Malaysia Berhad by way of a standby revolving credit facility.