Ho Hup Construction Company Bhd has defaulted on a revolving credit facility amounting to RM45.27 million, triggering legal proceedings initiated by AmBank Islamic Bhd.
In a filing with Bursa Malaysia today, the company disclosed that it had received a notice of demand and termination dated 29 May 2025 from the legal firm Lee & Koh, acting on behalf of AmBank Islamic. The notice, delivered on 4 June 2025, pertains to the non-payment under the said facility.
The outstanding amount constitutes 13.37 percent of Ho Hup’s audited net assets of RM338.48 million for the financial year ended 31 December 2023. It also represents 31.97 percent of its most recent net assets report totalling RM141.60 million.
The company attributed the payment default to its inability to meet scheduled principal and interest instalments as a result of cash flow constraints.
Ho Hup was classified under the Practice Note 17 (PN17) category on 18 April 2025 and is currently subject to a restriction order.
In response to the situation, the company intends to initiate negotiations with AmBank Islamic and other creditors in relation to a proposed debt restructuring exercise aimed at restoring financial stability. To support this process, an independent financial advisor has been appointed to facilitate discussions with creditors.
-Bernama
