At 9.48am, the counter shrank 2.5 sen or 42% to 3.5 sen with 59.81 million shares traded.

The mechanical and electrical engineering services specialist listed on the Main Market of Bursa Malaysia was classified under PN17 after its subsidiary defaulted on RM109.0 million worth of financing facilities.

This came after MBSB Bank Bhd terminated its role as the corporate guarantor for the Islamic banking facilities granted to its wholly-owned unit, Optimal Property Management Sdn Bhd.

Bintai Kinden executive director Azri Azerai blamed the Melaka government for not taking action to address payments owed to the company from the Universiti Melaka (UniMel) project, resulting in the default of the facility.

He said the state government owed RM49.8 million through Kolej Teknologi Islam Melaka Bhd (KTIMB), the operator of UniMel for the construction of its student campus accommodation.

“Bintai Kinden has been honouring its debt to MBSB Bank and has paid RM18.6 million from March 2021 to Dec 2022 towards the financing facility despite collecting only RM3.7 million from KTIMB,” he said.