Zetrix AI acknowledges potential breach of sukuk covenant

BURSA SGX Home Highlight Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (Oct 16): Zetrix AI Bhd (KL: ZETRIX ) acknowledged a potential breach of a sukuk's clause that requires the digital services firm’s managing director to remain as its single-largest shareholder.

The breach, triggered by a spate of forced selling that began near the end of August and cut Wong Thean Soon’s shareholding to less than 2% now from nearly 30%, has to be remedied by Oct 22 to comply with a covenant for a RM2 billion sukuk programme, the company said in an exchange filing.

If the company fails to remedy the breach by then, “the consent and instructions or direction of the sukukholders will be sought via an extraordinary resolution of sukukholders”, Zetrix AI said.

The company added that it is currently in talks with the sukuk trustee.