KUALA LUMPUR: Bintai Kinden Corp Bhd, a mechanical and electrical (M&E) engineering services specialist, has sealed a major deal with Windsor Serdang Sdn Bhd to wipe out all pending debts from Serdang Baru Properties Sdn Bhd that are owed to Kejuruteraan Bintai Kindenko Sdn Bhd (KBKSB).
The deal is simple but significant, Bintai Kinden said in a statement today.
Windsor Serdang will make a first payment of RM3.0 million to a stakeholder who is irrevocably authorised to release to KBKSB subject to certain conditions being fulfilled.
Following this, Windsor Serdang will pay an additional RM20.5 million, plus another RM0.5 million to cover legal costs, within the next eight months.
All of this is detailed in an agreement that will be finalised soon.
Bintai Kinden managing director Datuk Tay Chor Han said the agreement is more than a financial transaction.
It is a pivotal milestone in Bintai Kinden's journey towards greater financial stability and growth.
"By addressing this long-standing debt issue, we're not just balancing the books. We are also building a stronger foundation for future opportunities and value creation for our shareholders.
"It is essentially the first of many steps to be uplifted from our PN17 classification," he said.
Meanwhile, Axbena Sdn Bhd has decided to drop the RM27.7 million lawsuit against Johnson Medical International Sdn Bhd (JMI), an indirect subsidiary of Bintai Kinden.
This is after the parties involved reached an amicable settlement.
Concurrently, JMI has given notice to withdraw the adjudication process to claim for non-payment of progress claims, retention sum, maintenance charge and interest incurred for total amount of RM1.73 million against Axbena as part of the amicable settlement.
Both debt settlements come at a strategic time for Bintai Kinden as it navigates the complexities of an evolving marketplace.
"By removing this financial burden, we are freed to aggressively pursue new opportunities and invest in our existing lines of business," Tay said.
"These funds are pivotal for restructuring our banking facilities, a necessary and significant move towards successfully executing the company's PN17 regularisation plan.
This not only boosts Bintai Kinden's immediate financial standing but also lays the groundwork for long-term financial stability and growth," he added.