PKA in talks with finance ministry on debt restructuring

PKA in talks with finance ministry on debt restructuring
Port Klang Authority (PKA) is in talks with the finance ministry to restructure the RM3.8 billion debt that it incurred to develop the Port Klang Free Zone (PKFZ).

Transport Minister Anthony Loke Siew Fook said the Port Klang regulator had to repay loan instalments of RM222 million per annum while its revenue was forecast at RM266 million this year.

“This means PKA would incur a cash deficit of nearly RM43 million a year after taking into account the administrative cost of RM80 million and capital expenditure of RM6 million.

“In order to cover the deficit, PKA needs to tap on its cash reserves every year.

“PKA is, therefore, discussing with the finance ministry on how to restructure its debt in order to reduce repayment and avoid diminishing its cash reserves,” he said here today.

PKA in talks with finance ministry on debt restructuring