Zetrix AI faces RM2bil sukuk covenant risk
KUALA LUMPUR: Zetrix AI Bhd faces a potential covenant breach under its RM2 billion sukuk Wakalah after its managing director Wong Thean Soon ceased to be the company’s single largest shareholder following forced share sales by banks.
Zetrix AI Bhd, a Malaysian company, is facing a potential RM2 billion sukuk covenant breach, according to a filing with Bursa Malaysia. The company's managing director, Wong Thean Soon, no longer holds the largest shareholding in the company after banks forced the sale of his shares. As a result, Wong's combined direct and indirect shareholding fell to 1.895% as of October 15.
The sukuk agreement requires Wong to remain the single largest shareholder, either directly or indirectly. The company must address the potential breach within seven days of becoming aware of the failure, with a deadline of October 22. If the issue remains unresolved, Zetrix AI plans to seek consent and instructions from sukukholders through an extraordinary resolution.
The company is currently in discussions with the sukuk trustee and will provide further updates on significant developments as necessary. Trading in Zetrix AI's securities was suspended by Bursa Malaysia on Friday following the announcement.
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- Zetrix AI given until Oct 22 to fix potential sukuk covenant breach freemalaysiatoday.com
