Forced share sales that began in late August have affected Zetrix AI Bhd's shareholding structure and created a compliance risk under the company's RM2 billion sukuk programme. The digital services company must rectify the situation by 22 Oct or obtain sukukholders' consent through an extraordinary resolution.
Highlights
- Wong Thean Soon's stake in Zetrix AI fell below 2% from nearly 30% after forced selling since late August, triggering a potential breach of the company's RM2 billion sukuk covenant.
- Zetrix AI must rectify the covenant breach by 22 Oct or seek consent and instructions from sukukholders through an extraordinary resolution.
- The situation increases scrutiny from sukukholders and trustees, with ongoing negotiations expected to determine Zetrix AI's approach to compliance and sukukholder relations.
This article was translated from the original. Read the original version by our correspondent here.
Breach details and rectification period
According to The Edge Malaysia, as reported in the company's exchange filing, Zetrix AI acknowledged a potential breach of a sukuk clause requiring its managing director to remain the company's single largest shareholder.Wong Thean Soon's shareholding has now fallen to below 2% from nearly 30% following a wave of forced selling that began around late August. The situation triggered a potential covenant breach under the company's RM2 billion sukuk programme.
Zetrix AI said it must remedy the breach before 22 Oct. If the company fails to do so within that period, consent and instructions from sukukholders will be sought through an extraordinary resolution of sukukholders.
Implications for financing and next steps
The development has brought attention to the company's ability to remain compliant with financing conditions amid major changes to its key management shareholding structure. In sukuk-based financing, a covenant breach may lead to increased scrutiny by sukukholders and trustees of the company's remedial measures.Zetrix AI added that it is currently in discussions with the sukuk trustee. The outcome of those talks is expected to determine how the company addresses the non-compliance risk and manages its relationship with sukukholders in the near term.
In our earlier report on the suspension of Zetrix AI and MyEG as JPJ collection agents, we examined how issues involving unremitted payments affected core business operations and raised questions about the group's financial position. We also highlighted concerns over the RM2 billion sukuk after TS Wong's stake declined due to forced selling, including the covenant requiring him to remain the company's single largest shareholder.
Latest Company News News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
