What Triggered the Zetrix AI Sukuk Covenant Breach?
The covenant sits within Zetrix’s RM2 billion sukuk wakalah programme. Under it, Wong Thean Soon is required to remain the largest shareholder.
He ceased to hold that position after forced share sales, the company said in an Oct 16 reply to queries from Bursa Malaysia.
Why Did Wong Thean Soon’s Stake Fall to 1.895%?
His combined direct and indirect stake dropped from nearly 30% to 1.895% as at Oct 15. A separate Edge report puts his stake at 1.841% ahead of the Oct 22 deadline.
What Happens to the Zetrix Sukuk If the Breach Is Not Fixed?
If the breach is not resolved by Thursday, Zetrix said it will seek sukuk holders’ approval to waive the covenant. Alternatively, it will ask for further instructions on how to proceed.
Without a waiver, a dissolution event could be triggered. That would allow the sukuk trustee to demand immediate repayment of all outstanding amounts.
How Much Could Be Repayable on the RM2 Billion Sukuk?
Outstanding amounts comprise RM2 billion in principal and RM164.5 million in future coupon payments. Combined, that is about RM2.16 billion.
What Is at Stake for ZETRIX Shareholders?
- Principal exposure: RM2 billion under the sukuk wakalah programme.
- Future coupons: RM164.5 million.
- Largest-shareholder test: Wong Thean Soon’s stake fell from nearly 30% to 1.895% as at Oct 15.
- Dividend: Zetrix AI rescinded its dividend plan to conserve cash, according to a related Edge report.
The rescinded dividend sits alongside the sukuk exposure on the balance sheet. Shareholders should read the company’s next Bursa filing closely, since the outcome of the Thursday deadline will determine whether the sukuk holders grant a waiver.
Key Takeaways
- Zetrix AI (KL:ZETRIX) faces a Thursday deadline to fix a covenant breach on its RM2 billion sukuk.
- Managing director Wong Thean Soon’s stake fell from nearly 30% to 1.895% as at Oct 15, after forced share sales.
- Unresolved, the trustee could demand RM2 billion principal plus RM164.5 million in coupons.
- A sukuk holder waiver is the company’s stated route to avoid immediate repayment.
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Disclaimer: This article is for information only and is not financial advice. Always do your own research and check Bursa Malaysia announcements before making any investment decision.
Frequently Asked Questions
What is the Zetrix AI sukuk covenant breach?
Zetrix AI Bhd (KL:ZETRIX) breached a covenant requiring managing director Wong Thean Soon to remain its largest shareholder. The breach followed forced share sales that cut his stake to 1.895% as at Oct 15.
How much is the Zetrix AI RM2 billion sukuk worth to repay?
Outstanding amounts comprise RM2 billion in principal and RM164.5 million in future coupon payments. That totals about RM2.16 billion.
What happens if Zetrix AI does not fix the sukuk covenant breach by Thursday?
Zetrix said it will seek sukuk holders’ approval to waive the covenant, or ask for further instructions. Without a waiver, a dissolution event could let the sukuk trustee demand immediate repayment.
Why did Wong Thean Soon stop being Zetrix AI’s largest shareholder?
His stake fell after forced share sales, according to the company’s Oct 16 reply to Bursa Malaysia queries. His combined direct and indirect holding dropped from nearly 30% to 1.895%.
Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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