MARC has received confirmation from Malaysian Trustees Berhad, the trustee of Perak-Hanjoong Simen Sdn Bhd’s (PHSSB) RM698.0 million Bai’ Bithaman Ajil Islamic Debt Securities (ABBA), that PHSSB had missed its profit payment and principal redemption on 17 November 2004. Under the terms of the Trust Deed, this constitutes an event of default; consequently triggering the bank guarantees backing Tranches I, II, III and IV of the ABBA facility.

In respect of the non-guaranteed tranche, Tranche V, the bondholders of this said tranche have agreed to grant an indulgence for the repayment of the principal and profit due for a period of 6 months.