Share
- Ireka said the default relates to financing facilities originally granted to its former wholly owned subsidiary, Ireka Engineering & Construction Sdn Bhd, which has since been wound up.
KUALA LUMPUR (Sept 23): Ireka Corporation Bhd (KL:IREKA) has defaulted on loan repayments totalling RM1.04 million owed to Hong Leong Bank Bhd (KL:HLBANK) and AmBank (M) Bhd.
In a filing with Bursa Malaysia on Tuesday, Ireka said the default relates to financing facilities originally granted to its former wholly owned subsidiary, Ireka Engineering & Construction Sdn Bhd, which has since been wound up.
As of Sept 23, 2025, the outstanding amounts were RM675,000 with Hong Leong Bank and RM364,962.88 with AmBank.
Ireka said it is allocating its limited resources to sustain ongoing projects and to cover operational expenses to ensure business operations continuity.
“The company has been actively engaging in ongoing negotiations with financiers to pursue mutually acceptable solutions.
“It also continues to seek the financiers’ indulgence and support while it works to complete its monetisation of assets exercise, part of which will be allocated towards regularising the default in payments,” it said.
The company said Hong Leong Bank had issued a letter of demand dated Sept 18, 2025, in its capacity as a corporate guarantor, requesting settlement of arrears under the existing settlement arrangement.
Hong Leong Bank has reserved its right to pursue legal recovery actions in the event of continued non-payment and has expressly stated that all of its rights and interests remain fully reserved.
Accordingly, Ireka said it will submit the solvency declaration to Bursa Malaysia within three market days from the date of the announcement.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
