Friday, Feb 17, 2006
MARC has reaffirmed the MARC-4ID rating of Pembangunan Brisdale Sdn Bhd’s (PBSB) RM55 million Murabahah Notes Issuance Facility (MUNIF). Concurrently, the rating has been placed on MARCWatch with a Developing Outlook. PBSB is a wholly-owned subsidiary of Brisdale Holdings Bhd, the developer of Bandar Armada Putra located in the West Port vicinity. The rating reflects the weak demand for the property development at Bandar Armada Putra which consequently resulted in the company’s weak financial position. The Developing Outlook, on the other hand, is due to the uncertainty in the repayment of the final outstanding notes of the MUNIF totalling RM4.0 million where the repayment is contingent on the timely collection from certain sales proceeds which have been assigned to the MUNIF holder as well as the sale of an identified asset and receipt of the sale proceeds.
While carrying out the review, MARC was not able to ascertain the latest progress on the property development at Bandar Armada Putra as no latest updates were provided by PBSB. The fact that PBSB had requested for a deferment on one of the repayment dates which was originally scheduled in June 2005 from Abrar Discounts Berhad, the Facility Agent, suggests that there has been a lack of tangible progress at the property development site.
Notwithstanding, during the period under review, PBSB redeemed and cancelled RM18.0 million of the MUNIF leaving an outstanding notes amount of RM4.0 million which is expected to be redeemed on 31 March 2006. We have been informed by the management of PBSB that the money for the remaining outstanding notes is expected to be sourced from the collection of sales proceeds assigned to the MUNIF holder and certain sale of assets. However, it remains unclear as to whether the proposed sale of the assets and the receipt of the proceeds would materialise before the first quarter of 2006.
While carrying out the review, MARC was not able to ascertain the latest progress on the property development at Bandar Armada Putra as no latest updates were provided by PBSB. The fact that PBSB had requested for a deferment on one of the repayment dates which was originally scheduled in June 2005 from Abrar Discounts Berhad, the Facility Agent, suggests that there has been a lack of tangible progress at the property development site.
Notwithstanding, during the period under review, PBSB redeemed and cancelled RM18.0 million of the MUNIF leaving an outstanding notes amount of RM4.0 million which is expected to be redeemed on 31 March 2006. We have been informed by the management of PBSB that the money for the remaining outstanding notes is expected to be sourced from the collection of sales proceeds assigned to the MUNIF holder and certain sale of assets. However, it remains unclear as to whether the proposed sale of the assets and the receipt of the proceeds would materialise before the first quarter of 2006.