Loan default, bank "repossessed" KL Monorail;
Company self-declares insolvency, trading suspended indefinitely
UPDATED VERSION. BANK Pembangunan Malaysia Bhd (BPMB) has taken control of KL Infrastructure Group Bhd's (KLIG) main asset, the KL Monorail, after the company defaulted on its loan. Details in a filing to Bursa Malaysia, May 14.
KL Monorail could not pay interest of some RM4.2 million due on April 29 this year. It then received a notice to repay a total of RM906 million to BPMB by May 14. The deadline was defaulted,
UPDATES, May 15 5:30pm: KL Infrastructure Group informed Bursa Malaysia today that its Board of Directors "have formed an opinion" that the Company is insolvent, meaning it "will not be able to pay all its debts in full within a period not exceeding twelve (12) months from the date of this announcement", May 15.
In a separate statement, KL Infrastructure Group also informed Bursa Malaysia that its current financial condition had triggered the Enhanced Practice Note 17 of the listing requirement as it is now without a core business.
The company also announced that trading of its shares has been suspended with effect from 9.00am, May 15, 2007 until further notice.
Comments
I sense deja vu...again. Here's another transport company going under. It's a fact that capital intensive projects like the transport industry almost always experience financial difficulties & cashflow problems. Is this the start of another bailout? Will KL Monorail be restructured? How much of the taxpayer's moolah gonna be used to rescue KL Monorail? *Sigh..* when will we ever learn?
Posted by: queequeg![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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May 15, 2007 09:22 AM
ROFL. Perhaps BPMB a bit too late on it. They should has initiate an audit on the company and check what KLIG is doing. Are they running business or reaping "management rights" profit, as most crooks GLC management is doing.
Offtopic ;)
Monkey see, monkey do. Clueless monkey will follow whatever the first clueless monkey do, exploit whatever before passing the seat to next clueless monkey.
Posted by: moo_t![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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May 15, 2007 10:31 AM
vincent Tan built the monorail, and cashed out before completion with all the mark ups. The guy who bought after that now carries the burden of construction plus plus.The monorail should have been a circle line type track. It just show that bad planning is again costing this country too much in terms of costs.
Posted by: sydput![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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May 15, 2007 05:15 PM
This is what happens when you go for listing before your business is up and running. All the figures are based on 'projected' income and your asset is worth next to zero since you can not 'dismantle' the system and move it or sell it to another country.... Was Bursa asleep that day? At the end of the day we have a Big White Elephant. Does not help when you get sued for losing a wheel and then hired a monkey of a lawyer.
Got service tomorrow or not? If not, we can 'Jay Walk' under the track heh...??
Posted by: nyc![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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May 15, 2007 07:30 PM
just read the company's 2006 annual report. Technically this company has been insolvent 2 years ago. The auditors' report was also qualified, ie not in good shape.
Posted by: lktang![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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May 15, 2007 07:59 PM