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Monday, July 14, 2008

MK Land to be taken private?

Tan Sri Mustapha Kamal Abu Bakar, a co-founder of MK Land Holdings Bhd, may take the troubled property developer private as part of plans to turn it around, a source close to him said.

The businessman holds 47.4 per cent of MK Land and he has taken over the company's leadership as chief executive on June 25.

He replaces his partner Datuk P. Kasi who was redesignated as a non-executive director. Kasi holds 25.4 per cent of MK Land.

"As a majority stakeholder of MK Land, it's logical for him to come back and return the company to the black," the source said.

Mustapha could not be reached for comment.

However, it is learnt that he will study the company's situation before making major moves.

Contractors and consultants for some of MK Land's projects are expected to be called for a meeting soon.

"After leaving MK Land for so long, Mustapha Kamal wants to study the nitty-gritty of the company," the source said.

In May, MK Land asked its bondholders for permission to delay debt repayments by up to a year.

The company had in 2001 and 2002 issued two tranches of RM150 million each of serial bonds, with the final maturities due in August this year and September 2009.

MK Land said it was seeking an indulgence from bondholders to defer payments for a total of RM60 million to two separate sinking fund accounts.

By New Straits Times (by Sharen Kaur)

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