Zetrix AI Faces Deadline on RM2 Billion Sukuk Covenant Breach

Zetrix AI Bhd has until Thursday to resolve a covenant breach that could trigger a payment default on its RM2 billion sukuk, The Edge Malaysia reported.

How the Breach Arose
What Happens Next

How the Breach Arose

The breach occurred after managing director Wong Thean Soon ceased to be the company’s largest shareholder following forced share sales, Zetrix said in an Oct 16 reply to queries from Bursa Malaysia.

His combined direct and indirect stake dropped from nearly 30% to 1.895% as at Oct 15. The terms of Zetrix’s RM2 billion sukuk wakalah programme require him to remain the largest shareholder.

What Happens Next for the Zetrix AI Sukuk

If the breach is not remedied by Thursday, the company said it will ask sukuk holders to waive the covenant or seek their further instructions on how to proceed.

Without a waiver, a dissolution event could be triggered, which would allow the sukuk trustee to demand immediate repayment of all outstanding amounts. These comprise RM2 billion in principal and RM164.5 million in future coupon payments.

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