Thursday, Oct 20, 2005
MARC places the following companies on MARCWatch with developing outlook premised upon their current weak cash flow positions and their reliance on the disposal of 25% equity interest in Kumpulan Europlus Berhad (KEB) shares to IJM Corporation, with which the related Share Purchase Agreement has been extended to 30 November 2005.
Companies on MARCWatch with developing outlook:
Perspektif Perkasa Sdn Bhd (Up to RM188.0 million nominal value Murabahah Underwritten Notes Issuance Facility)
Delays in development plans leading to weaker cashflow position.
A principal repayment that was due in July 2005 amounting to RM25.0 million was given indulgence to settle by November 2005. Currently, about RM722,000 is available in the Debt Service Reserve Account (DSRA). A piece of land has been identified for sale as the source of repayment at time of this announcement. However, the Sale and Purchase Agreement has not been signed. In addition, the noteholders have agreed in principle to reschedule the existing repayment terms upon settlement of the said amount and subject to the cashflow projections on the balanced unsold land.
Maxisegar Sdn Bhd (RM250.0 million Al Bai Bithaman Ajil Islamic Debt Securities )
Delays in meeting development milestones leading to weak cashflow position. As at 17 October 2005, the balance in the DSRA stood at RM144,000. This account which was drawn in August 2005 to service the last coupon payment, has yet to be replenished.
MSB’s development is currently around 10% completed. MSB will have to achieve more than 20% stage of completion within the next 4 months, in order to meet the next redemption of RM34.8 million on 26 February 2006.
MARC is concerned over the cashflow effects resulting from the delays in both MSB’s and PPSB’s projects.
In addition, the current proposed disposal of 25% equity interest to IJM, which is viewed as a key solution to their cashflow difficulties, is contingent upon the fulfilment of certain conditions precedent including the signing of West Coast Highway Concession Agreement. Upon completion, IJM would be able to help resuscitate many of the development projects. However, the proposal is now extended to 30 November 2005 delaying any form of immediate relief to MSB’s and PPSB’s debt servicing pressures.
MARC will continue to monitor developments and assess their impact on the rating.
Companies on MARCWatch with developing outlook:
Perspektif Perkasa Sdn Bhd (Up to RM188.0 million nominal value Murabahah Underwritten Notes Issuance Facility)
Delays in development plans leading to weaker cashflow position.
A principal repayment that was due in July 2005 amounting to RM25.0 million was given indulgence to settle by November 2005. Currently, about RM722,000 is available in the Debt Service Reserve Account (DSRA). A piece of land has been identified for sale as the source of repayment at time of this announcement. However, the Sale and Purchase Agreement has not been signed. In addition, the noteholders have agreed in principle to reschedule the existing repayment terms upon settlement of the said amount and subject to the cashflow projections on the balanced unsold land.
Maxisegar Sdn Bhd (RM250.0 million Al Bai Bithaman Ajil Islamic Debt Securities )
Delays in meeting development milestones leading to weak cashflow position. As at 17 October 2005, the balance in the DSRA stood at RM144,000. This account which was drawn in August 2005 to service the last coupon payment, has yet to be replenished.
MSB’s development is currently around 10% completed. MSB will have to achieve more than 20% stage of completion within the next 4 months, in order to meet the next redemption of RM34.8 million on 26 February 2006.
MARC is concerned over the cashflow effects resulting from the delays in both MSB’s and PPSB’s projects.
In addition, the current proposed disposal of 25% equity interest to IJM, which is viewed as a key solution to their cashflow difficulties, is contingent upon the fulfilment of certain conditions precedent including the signing of West Coast Highway Concession Agreement. Upon completion, IJM would be able to help resuscitate many of the development projects. However, the proposal is now extended to 30 November 2005 delaying any form of immediate relief to MSB’s and PPSB’s debt servicing pressures.
MARC will continue to monitor developments and assess their impact on the rating.