PETALING JAYA: MAGNA PRIMA BHD
’s recent loan payment default is unlikely to cause any significant impact on its earnings, but failure to reschedule the loan facilities could result in potential liquidity issues.
Kenanga Research in a report yesterday said the property developer’s weak financial position reaffirmed its bearish view on the stock.
“We think that the default payment will not significantly affect the company’s financial position and solvency, given that a land with a market value of RM200mil is secured against the bank facilities (with Alliance Bank) and the total default payment represented only 7.9% of Magna Prima’s total net asset as at March 31,2020.
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