Zetrix faces potential RM2.16 billion sukuk payment over covenant breach
The breach followed forced share sales that left managing director Wong Thean Soon no longer the company’s largest shareholder.
Zetrix AI Bhd could face RM2.16 billion in sukuk payment obligations if a covenant breach remains unresolved by Oct 22, potentially triggering a payment default. The company disclosed the position in response to Bursa Malaysia’s queries.
The covenant requires managing director Wong Thean Soon to retain his position as Zetrix’s largest shareholder under its RM2 billion sukuk wakalah programme. Following forced sales, his combined direct and indirect stake dropped to 1.895% as at Oct 15 from nearly 30%, the company said.
Zetrix said that, if the breach remains unresolved by Oct 22, it will ask sukuk holders to waive the covenant or give instructions on the next steps. A dissolution event could follow if no waiver is granted, enabling the trustee to call for immediate repayment.
The company put future coupon payments at RM164.5 million and principal at RM2 billion. It said its assessment of the financial and operational consequences was continuing, with material developments to be announced.
Zetrix shares closed at 5.5 sen on Oct 16, down one sen, or 15.38%, after trading as low as five sen. Turnover approached 255 million shares. The decline since late August has erased more than 90% of its market capitalisation, which stood at RM444.3 million at the close. Cash holdings were RM541.6 million as at June 30, 2026.
The share sales followed margin calls on Wong’s share-backed financing facilities. MARC Ratings also highlighted the covenant breach and expressed concerns about transparency and corporate governance at Zetrix.
