Zetrix AI's TS Wong sells more shares as Oct 22 sukuk covenant deadline looms
Zetrix AI managing director TS Wong has sold additional shares, further complicating the company's ability to meet a critical RM2 billion sukuk covenant deadline. The company has also withdrawn a planned dividend to preserve working capital amid ongoing financial instability.
Why it matters
The potential breach of a multi-billion ringgit debt covenant poses a significant financial risk to the company and its stakeholders, reflecting broader volatility in the firm's leadership and capital structure.
BURSA SGX Home Highlight Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (Oct 19): Zetrix AI Bhd (KL: ZETRIX ) managing director Wong Thean Soon has sold another 600,000 shares, reducing his stake to 1.887% and further complicating the group’s efforts to remedy a breach of its RM2 billion sukuk covenant, which requires him to remain its largest shareholder, by the Oct 22 deadline.
The company last Friday said it would seek sukuk holders’ approval for a waiver if the breach cannot be resolved by Oct 22. Without a waiver, the breach could trigger early repayment of the RM2 billion principal and RM164.5 million in future coupon payments, bringing the total potential liability to RM2.16 billion.
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