Umno-owned Utusan Malaysia has defaulted on its RM2.9 million loan.
Utusan Melayu Bhd, which owns the paper, said it could not meet its obligation to Affin Islamic Bank Bhd because of financial constraints and has defaulted on payments to the bank.
The loan was supposed to be settled on July 31.
“The company intends to submit a proposal to restructure the term-loan facilities with the bank.
“In the meantime, the company is working towards restructuring all its loan facilities in line with its business transformation plan,” it said.
Utusan said there is no significant impact of the default in payment on the business, financial and operations of the remaining business of the group.
“Nevertheless, the group shall endeavour to continue its other remaining business operations notwithstanding the default and will engage with the lenders and suppliers for their continuous support,” it said.
Shares in Utusan were not traded today. The stock last closed at 24.5 sen on July 30, giving it a market capitalisation of RM27.13 million.