Zetrix AI given until Oct 22 to fix potential sukuk covenant breach

Zetrix AI Bhd has been given until October 22 to rectify a potential breach of its sukuk terms following the forced sale of shares by banks, as reported in a bourse filing. The company's founder and executive vice-chairman, Wong Thean Soon, now holds 1.895% of the company's shares, down from his previous 29.25%. This drop in shareholding occurred due to margin calls after Zetrix's share price plummeted.

Known as Sukuk Wakalah, the program requires Wong not to sell or transfer his stake without the consent of sukukholders. If Zetrix fails to remedy the breach by the deadline, the company will seek the consent and instructions of the sukukholders through an extraordinary resolution. The company is in discussions with the sukuk trustee regarding the matter and will announce any significant developments when appropriate.

Zetrix issued its first tranche of RM100 million in sukuk on November 21, 2022, with a five-year maturity. Three additional tranches totaling RM200 million have since been issued. Failure to comply with the sukuk terms could result in a Practice Note 17 classification. MyEG and Zetrix, previously MyEG Services Bhd, have been suspended as collection agents by the road transport department due to owing hundreds of millions in arrears since May.

Zetrix has stated it will cooperate with the joint investigation by the police and the Malaysian Anti-Corruption Commission into the alleged failure to transfer RM230.9 million in collected government revenue.