Ho Hup defaults on RM45.3 mil loan from AmBank Islamic

• Ho Hup said the total outstanding under the facilities represents 13.37% of the group’s net assets of RM338.48 million, based on audited financial statements for the year ended Dec 31, 2023, and 31.97% of net assets of RM141.60 million, based on its latest announced financials.

KUALA LUMPUR (June 6): Ho Hup Construction Co Bhd (KL:HOHUP), which slipped into Practice Note 17 (PN17) status earlier in April, has defaulted on revolving credit facilities from AmBank Islamic Bhd amounting to RM45.3 million.

In a filing with the stock exchange on Friday, the construction outfit said it had received a notice of demand and termination dated May 29, 2025, from the bank over the outstanding amount.

Ho Hup said the total outstanding under the facilities represents 13.37% of the group’s net assets of RM338.48 million, based on audited financial statements for the year ended Dec 31, 2023, and 31.97% of net assets of RM141.60 million, based on its latest announced financials.

The default was due to the company being unable to meet principal and interest instalments due to cash flow difficulties, it noted.

Ho Hup acknowledged that the default could lead to legal action by AmBank Islamic. To address this, it plans to begin discussions with the bank on a settlement proposal.

It has also appointed an independent financial adviser to engage with creditors on a debt restructuring proposal to regularise its financial position.

On April 18, Ho Hup announced its classification as a PN17 issuer after its wholly owned Bukit Jalil Development Sdn Bhd defaulted on RM112.69 million in loan facilities for which Ho Hup is the guarantor.

The company has been in the red since 2021. For the financial period ended March 31, 2025, it posted a net loss of RM27.2 million on a revenue of RM2.29 million. There are no comparative figures as the group changed its financial year-end from Dec 31, 2024, to June 30, 2025.

As of end-March 2025, its current borrowings stood at RM366.3 million, with non-current borrowings at RM71.9 million. Current assets amounted to RM667.2 million, while non-current assets totalled RM185.9 million.

Ho Hup shares fell half a sen or 6.3% to close at 7.5 sen on Friday, valuing the group at RM38.9 million.

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