Bina Puri seeks 10% debt waiver under conceptual restructuring plan

• The proposed waiver amounts to shaving off RM30.3 million of the RM302.55 million in scheme debt that is intended to be covered under Bina Puri's restructuring plan.

KUALA LUMPUR (Oct 31): Bina Puri Holdings Bhd (KL:BPURI) has outlined a "conceptual" scheme of arrangement that proposes creditors grant a 10% waiver on debts it owes them, as the company seeks court protection to finalise its financial overhaul.

The proposed waiver amounts to shaving off RM30.3 million of the RM302.55 million in scheme debt that is intended to be covered under Bina Puri's restructuring plan, according to the civil and building engineering company's bourse filing on Friday.

Of the remainder, it plans to settle RM143.3 million (47.4%) via equity conversion and RM18.75 million (6.2%) via funds to be raised from a rights issue. A balance RM110 million (36.4%) will undergo debt restructuring, to be repaid over a specified term.

Bina Puri said the plan, which outlines the proposed scheme of arrangement, is just conceptual at this juncture, and that full details will be announced after finalisation with stakeholders and creditors.

A scheme of arrangement is a court-approved agreement between a financially distressed company and its creditors or shareholders to restructure its debt and revive the company.

Bina Puri filed an application with the court on Oct 29 to convene a meeting with its creditors for the scheme and to obtain a restraining order against all pending and future legal actions.

With that, "an automatic restraining order has taken effect from Oct 29, which moratorium will remain in effect until further order of the court or until the lapse of two months”, Bina Puri said.

This court filing has deferred a scheduled hearing on Friday for a winding-up petition against Bina Puri. The petition hearing has now been postponed to Jan 20, 2026.

The winding-up petition was filed by Wisma Majujaya Sdn Bhd, a company that obtained a summary judgment against Bina Puri in February this year for an unpaid debt of RM28.1 million.

Shares in Bina Puri ended unchanged at 34.5 sen on Friday, giving the company a market capitalisation of RM303.54 million.

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