KUALA LUMPUR: Zetrix AI Bhd has failed to reach an agreement with its sukukholders over a covenant breach involving its RM2 billion sukuk programme, prolonging uncertainty over the company's debt obligations.
The setback came as the embattled technology group offered nearly 789 million share options to directors and employees at a 28 per cent discount to its closing share price of 7.5 sen today.
In a filing with Bursa Malaysia, Zetrix AI said no resolution was reached at today's sukukholders' meeting, which was convened to discuss a proposed arrangement to address the breach.
"There was no resolution achieved by all parties during the sukuk holders' meeting," it said.
The company said another meeting would be arranged, although no date had been fixed.
The discussions followed the expiry of the Oct 22 deadline to remedy the breach, which arose after forced share sales by banks reduced managing director Wong Thean Soon's combined direct and indirect stake to 1.895 per cent as at Oct 15.
Under the terms of its Sukuk Wakalah programme, Wong is required to remain the company's single largest shareholder.
Without a waiver or an acceptable resolution, Zetrix AI risks triggering a dissolution event that could allow the sukuk trustee to demand accelerated repayment of outstanding amounts.
The company has RM2 billion in outstanding sukuk principal and RM164.5 million in future coupon payments.
In a separate filing, Zetrix AI announced an offer of 788.83 million options under its employees' share option scheme at an exercise price of 5.4 sen each.
The options, which vested immediately, were offered to eligible directors and employees.
Wong was offered 27.5 million options, while chairman Datuk Dr Norraesah Mohamad and directors Datuk Mohd Jimmy Wong Abdullah and Wong Kok Chau were each offered 10 million options.
Together, the four directors were offered 57.5 million options.
Zetrix AI's shares surged 50 per cent to close at 7.5 sen today, after months of heavy selling driven by financial and governance concerns.
The group has faced mounting pressure in recent weeks, including a sharp credit rating downgrade and the withdrawal of its previously declared interim dividend to preserve working capital.
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