This article first appeared in The Edge Financial Daily on February 12, 2020

KUALA LUMPUR: Perak Corp Bhd — whose Movie Animation Park Studios (MAPS) theme park in Ipoh was closed last month until further notice — has lapsed into the Practice Note 17 (PN17) status.

The state-owned firm told Bursa Malaysia yesterday that it is now regarded a PN17 company arising from a default in payment and its inability to declare solvency.

This comes after the group defaulted on another repayment of principal — for the Musharakah Mutanaqisah Term Financing-i and Tawarruq Revolving Credit-i of up to RM100 million granted by Affin Islamic Bank Bhd.

Last October, Animation Theme Park Sdn Bhd — a 51%-owned subsidiary of PCB Development Sdn Bhd, in turn a wholly-owned unit of Perak Corp — defaulted in repayment of principal for a syndicated term loan facility of up to RM280 million involving Affin Hwang Investment Bank Bhd, Affin Bank Bhd, Bank Pembangunan Malaysia Bhd and Malaysia Debt Ventures Bhd.

“Arising from the default in payment and the company unable to declare it is solvent, the company has triggered the prescribed criteria under paragraph 2.1(f) of the PN 17 of the Listing Requirements,” the company said.

Perak Corp added that it is developing a debt restructuring scheme to manage debts.

Shares in thinly-traded Perak Corp closed 1.5 sen up at 37.5 sen yesterday, with a market capitalisation of RM37.5 million.