Gov't orders port authority to pay PKFZ bondholders

The government has decided for the Port Klang Authority (PKA) to make payment to special purpose vehicles as set out in the payment schedule.In making the decision, the Transport Ministry said, the government had taken all relevant factors including the government's commitment to bondholders, and PKA's obligations under the agreements signed.
PKA had also given an undertaking to make payment to the special purpose vehicles, it said in a statement carried by Bernama today.The PKA board of directors are to meet tomorrow morning to decide whether to fulfill its apparent obligations to bondholders who helped finance Port Klang Free Zone (PKFZ) turnkey contractor Kuala Dimensi Sdn Bhd (KDSB).

Previously, the board had reportedly expressed reservations on the payment of RM222.58 million to KDSB's special purpose vehicle Free Zone Capital Bhd (FZCB), because of an ongoing suit.

Another RM150 million is owed to Special Port Vehicle Bhd on July 31, the same day as the deadline for the FZCB.Last month holders of papers issued by two special-purpose vehicles (SPV) - Transshipment Megahub Bhd (TMB) and Valid Ventures Bhd (VVB) - were paid RM230 million and RM120 million, respectively.PKA is suing KDSB for allegedly overclaiming RM1.4 billion and is considering withholding payment because it is worried that it may not be able to recover funds from the latter

Source : http://www.malaysiakini.com/news/138596