day for Zetrix AI to fix RM2b sukuk covenant breach
Zetrix AI Bhd faces a critical deadline to resolve a covenant breach on its RM2 billion sukuk after its managing director's shareholding dropped significantly. Failure to secure a waiver or resolution could trigger a demand for immediate repayment of the entire debt.
Why it matters
A potential default on a large-scale sukuk issuance poses significant financial risk to the company and its investors, highlighting corporate governance and debt management challenges.
BURSA SGX Home Highlight Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (Oct 22): Zetrix AI Bhd (KL: ZETRIX ) faces a deadline on Thursday to resolve a covenant breach that could trigger a payment default on its RM2 billion sukuk.
The breach arose after managing director Wong Thean Soon ceased to be the largest shareholder following forced share sales, the company said in an Oct 16 reply to queries from Bursa Malaysia.
His combined direct and indirect stake fell from nearly 30% to 1.895% as at Oct 15.
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