IPOH, Dec 10 — Perak Mentri Besar Datuk Seri Ahmad Faizal Azumu today said Animation Theme Park (ATP) will discuss Movie Animation Park Studios’ (MAPS) loan repayment default with Affin Hwang Investment Bank Bhd (Affin Investment).

ATP is a subsidiary of Perak Corporation Berhad (PCB).

Ahmad Faizal said the Pakatan Harapan (PH) government has tried to save MAPS from its financial difficulty but could not stop it from defaulting on RM21 million over the last two months.

"ATP started the MAPS project with hundreds of millions of debt. We have tried for more than one year to save MAPS by reducing the workers and have also introduced various methods to boost income.

"By doing this, we have managed to reduce the overhead cost and managed to pay the salaries of workers with the revenue we get from the operation.

"However, for the past two months, we have not been able to pay the default payment amounting RM21 million, which has caused the bank to take legal action,” he told a press conference.

Ahmad Faizal said that MAPS is now under receivership and will apply for PN17 status.

Receivership refers to a trustee who is legally appointed to act as the custodian of a company’s assets or business operations while PN17 stands for Practice Note 17/2005 and is issued by Bursa Malaysia and denotes financial distress.

Last week, The Edge Markets reported that Affin Investment has appointed Duar Tuan Kiat of Messrs Ernst & Young as receiver and manager of ATP’s property.

The report also said that the management powers of ATP’s directors were also suspended immediately.

The report also stated that ATP defaulted on its repayment of principal payment totalling RM25.7 million.

The loan was granted by Affin Investment, Affin Bank Bhd, Bank Pembangunan Malaysia Bhd and Malaysia Debt Ventures Bhd. The theme park was built at a cost of RM520 million.

Affin Investment is said to have informed ATP that failure to effect the payment as demanded would "result in the secured obligations amounting to RM242.65 million from ATP becoming due and payable”.

When asked if MAPS would be closed, Ahmad Faizal said that it might not be as the bank understood that the business must continue in order for it to be repaid.