The remaining principal balance due to KDSB is only RM2.144 billion. Under extreme negotiating position, PKA could drawdown this amount from MOF and pay off KDSB in full (less any disputed amounts for work not done and overcharges). This will save RM1.425 billion in interest charges that is due to KDSB. This will work if KDSB could redeem the bonds at a deep discount or feel ‘encouraged’ to comply.
The Task Force’s recommendations and any legal action taken by PKA may have an impact on the current contractual obligations with regards principal repayment and interests payable to KDSB, and determine existence of any factor that may vitiate unfavourable terms.
The restructuring of MOF soft loan would also have a positive impact.
