There are concerns as to how Cypark could meet its debt obligation [given the delay in projects].”He points out that certain quarters had previously raised concerns that Cypark’s cash flow could be strangled by its floating solar projects. If these projects are really causing cash flow problems to Cypark, then the management needs to find ways to rectify the situation urgently. Furthermore, Cypark’s biogas plant in Kg Gajah, Perak, also successfully achieved its COD on Dec 31 last year. It is also worth noting that Cypark secured a solar project in Kuantan, Pahang, in June last year under the net energy metering scheme 3.0. Cypark adds that RAM Ratings’ rating assessment has also considered the extraordinary resolution notice that was circulated to the sukuk holders on May 23.

Source: The Edge Markets June 07, 2022 08:37 UTC