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Mithril selling KK office space for RM43.2m to repay loan stocks

KUALA LUMPUR (Dec 14): Mithril Bhd is selling 29 parcels of commercial office space within Menara MAA in Kota Kinabalu for RM43.2 million cash to repay its redeemable convertible secured loan stock (RCSLS).

It said on Wednesday the proposed disposal was expected to result in a consolidated net loss after tax on disposal of RM5.3 million and a discount of about 10.9% to the market value of the properties.

The properties which Mithril is selling are 27 parcels of commercial office space, measuring 169,281 sq ft in Menara MAA for RM40.20 million cash to Tanam Permai Holdings Sdn Bhd.

Mitrhil had also proposed to sell a unit in Menara MAA — measuring 1,890 sq ft — to Tan Wai Seng for RM600,000, as well as proposing to sell a parcel of commercial office space — measuring 4,593 sq ft, also in Menara MAA — to Madam Link Sdn Bhd for RM2.40 million.

"The proposed disposal of properties is proposed at this juncture as Mithril is compelled to repay in full the outstanding amounts owing to the RCSLS holders," it said.

Mithril said the proposed disposal was crucial to avoid an event of default under the terms of the trust deed and deeds of assignment of the RCSLS.

Mithril said the RCSLS were issued on April 6, 2004 and secured by the MAA deed of assignment and security deeds of assignment on the Properties.

To recap, on April 5, 2011, the company had defaulted on its coupon payment obligations amounting to RM1.25 million for the RCSLS due and payable on that day.

On Oct 3, 2011, the RCSLS holders had given the company up to June 30, 2012 to meets its obligations as per the trust deed for the RCSLS and deferred the declaration of an event of default.

However, if Mithril and the purchasers of the properties fail to complete the deal, Mithril would  be in default of its repayment to the RCSLS holders.

Hence, AmTrustee had full authority to demand the full repayment of the RCSLS to be immediately due and payable to the RCSLS holders.

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