Bina Puri wins 75% lender approval for debt restructuring plan

PETALING JAYA (June 30): Bina Puri Holdings Bhd (BPHB) has obtained an “approval in principle” (AIP) from its participating lenders on the terms of its proposed restructuring scheme mediated by Bank Negara Malaysia’s Corporate Debt Restructuring Committee (CDRC), marking a key procedural step in its debt workout process.

BPHB said it received a letter from CDRC dated yesterday, confirming that lenders representing at least 75% in value have granted their AIP to the terms and conditions of BPHB’s Proposed Restructuring Scheme (PRS). Pursuant to Section 8.8 of the CDRC Code of Conduct, the PRS is treated as binding on all participating lenders within the CDRC framework, once that 75% value threshold is met.

The company stressed that the AIP relates solely to the PRS as mediated by CDRC. It does not itself constitute approval of Bina Puri’s formal scheme of arrangement with its wider creditor base.

The Corporate Debt Restructuring Committee, which operates under the purview of Bank Negara Malaysia, provides a platform for financially distressed companies to negotiate consensual debt restructuring terms with financial institution lenders outside court‑led insolvency processes.

By securing AIP from lenders representing at least 75% in value, BPHB has met the threshold required under the CDRC framework, with the mediated PRS now treated as binding on all participating lenders within that framework. This helps reduce the risk of non‑alignment among participating lenders under the CDRC process.

The announcement does not set out specific restructuring terms such as maturity extensions, interest adjustments, haircuts or collateral arrangements, and is confined to the procedural status of the PRS within the CDRC mechanism.

BPHB said its Scheme Meeting will be held today (or any adjournment thereof), where scheme creditors of the company will consider and, if thought fit, approve the company’s Proposed Scheme of Arrangement.

The scheme of arrangement, which is separate from the CDRC‑mediated PRS, is the formal legal mechanism under Malaysian company law by which Bina Puri seeks to restructure its obligations to scheme creditors. The outcome of the scheme meeting will determine whether the broader creditor base endorses the restructuring.

BPHB said it will make further announcements as and when appropriate.

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