Zetrix AI clarifies sukuk covenant breach does not trigger immediate RM2.16 billion payment

Traders Union
All News
Business & Wealth
Companies
Zetrix AI & sukuk issues

Highlights

Zetrix AI Bhd reported to Bursa Malaysia that the sukuk covenant breach did not trigger an immediate RM2.16 billion payment obligation.
The company stressed that all payments under the sukuk programme had been made according to schedule, with no payment defaults as of the announcement date.
Zetrix AI will promptly notify Bursa Malaysia if a payment default arises and will continue discussions with the trustee and sukukholders.

This article was translated from the original. Read the original version by our correspondent here.

Sukuk covenant breach and obligations

As reported by The Edge Malaysia, Zetrix AI Bhd informed Bursa Malaysia that a dissolution event had been triggered after the company breached a covenant requiring managing director Wong Thean Soon to remain the company’s largest shareholder.

In its response to an inquiry from Bursa Malaysia Securities, the company said the breach did not require it to make an immediate repayment of the outstanding amount under its sukuk programme. Zetrix AI also stated that all payments due under the programme had been made according to schedule.

The company also stressed that no payment default had occurred as of the announcement date. It said a payment default could arise only if it failed to settle the entire outstanding amount when repayment became due and payable.

Next steps and market implications

Zetrix AI said it would make an immediate announcement in accordance with Paragraph 9.19A of the Bursa Malaysia Securities Main Market Listing Requirements if a payment default occurred. The clarification indicates that the current issue relates to a covenant breach, rather than an actual payment default.

The company added that it would continue discussions with the sukuk trustee and sukukholders to resolve outstanding matters in accordance with the programme’s terms and conditions. For the market, this development shows that compliance risks related to the company’s Islamic financing instruments remain under close scrutiny, even as current payment flows remain orderly.

In our earlier report on the suspension of Zetrix AI and MyEG as JPJ collection agents, we examined the impact of losing this business stream following concerns over more than RM200 million in payments allegedly not remitted. The article also outlined the pressure on the company’s financial position, including scrutiny of its RM2 billion sukuk as Wong Thean Soon’s stake fell, raising concerns about a potential covenant breach.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.