Editing KL Monorail (section)

===Government takeover===
In April 2007, talks were under way between KL Infra and the government and the Bank Pembangunan Malaysia Berhad to sell the KL Monorail Line to the [[Prasarana Malaysia]], which then had already owned both the [[Kelana Jaya line]] and the [[Ampang line]], as well as 10% of KL Infra shares. KL Infra was cited as intending to exit Malaysia's monorail business. The takeover is part of the government's master plan to improve the urban public transport sector.<ref name="takeover"/><ref name="takeover2">{{cite news|url=http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_23c10dc8-cb73c03a-166c1140-6c7f06b2 |title=Syarikat Prasarana Negara in talks to take over KL monorail |location=Kuala Lumpur |access-date=25 April 2007 |date=24 April 2007 |work=[[The Edge (Malaysia)|The Edge]] |archive-url=https://web.archive.org/web/20070427021353/http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_23c10dc8-cb73c03a-166c1140-6c7f06b2 |archive-date=27 April 2007 |url-status=dead }}</ref>

SPN gave its agreement in principle to the takeover on 22 December 2006 and a follow-up meeting was held on 6 February 2007 with the government on the takeover of its operational assets and assumption of loan liabilities. {{Citation needed|date=April 2023}}A due diligence audit was conducted from 5 March 2007 to 27 April 2007 by consultants appointed by the government. Following agreement to the takeover, BPM granted KL Monorail an extension until 29 April 2007 for an interest repayment amounting to MYR 4,244,801.91, which was originally due on 29 December 2006.<ref name="default">{{cite web|url=http://announcements.bursamalaysia.com/EDMS/annweb.nsf/LsvAllByID/482568AD00295D07482572CD003B2C5E?OpenDocument |title=Bursa Malaysia General Announcement: Default in Payment Pursuant to Practice Note No. 1/2001 of the Listing Requirements of Bursa Malaysia Securities Berhad |date=30 April 2007 |url-status=dead |archive-url=https://web.archive.org/web/20120207040842/http://announcements.bursamalaysia.com/EDMS/annweb.nsf/LsvAllByID/482568AD00295D07482572CD003B2C5E?OpenDocument |archive-date=7 February 2012 }}</ref>

However, the takeover seemed to have suffered a setback at least from the perspective of KL Infra when on 26 March 2007, it was notified by BPM that it was not going to entertain any further extensions for interest repayment. Subsequently on 27 April 2007, the bank notified that it would not be granting any [[Debt moratorium|moratorium]] on interest repayments. On 29 April 2007, KL Monorail was not able to make the repayment of the interest instalment which had become due.<ref name="default"/>

On 3 May 2007, KL Monorail was issued a default notice by BPM which sought repayment of the entire principal sum of MYR 609,616,423.73 and capitalised interest of MYR 296,428,910.88 totalling MYR 906,045,334.61. The company was granted seven days from that day to repay the entire sum, which it failed to do. {{Citation needed|date=April 2023}}On 14 May 2007, Mohd Anwar Bin Yahya and Cho Choo Meng were appointed receivers and managers by Amanah Raya, the Security Trustee for BPM. Nevertheless, the takeover process is still deemed ongoing, KL Infra stating that it will continue to engage the government and BPM to address the proposed takeover of KL Monorail by Prasarana based on earlier discussions and an approval in principle.<ref>{{cite web |url= http://announcements.bursamalaysia.com/EDMS/EdmsWeb.nsf/LsvAllByID/48256E5D00102DF3482572DB003B8F84?OpenDocument |archive-url= https://web.archive.org/web/20160304102333/http://announcements.bursamalaysia.com/EDMS/EdmsWeb.nsf/LsvAllByID/48256E5D00102DF3482572DB003B8F84?OpenDocument |url-status= dead |archive-date= 4 March 2016 |title=Bursa Malaysia General Announcement: Appointment of Receivers and Managers for KL Monorail System Sdn Bhd (KLMS) |date=14 May 2007}}</ref>

One of the effects of the appointment of receivers and managers is the possibility that KL Infra will not be receiving any compensation for KL Monorail should the takeover by SPN go through.<ref name="receivers2">{{cite news |url= http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_b19f88d9-cb73c03a-a1aa8500-f458f34f |title=Corporate: Puzzle over bank's move on KL Monorail |access-date=23 May 2007 |author=Lim Ai Leen |date=21 May 2007 |location= Kuala Lumpur |work=[[The Edge (Malaysia)|The Edge]] |archive-url= https://web.archive.org/web/20070928001844/http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_b19f88d9-cb73c03a-a1aa8500-f458f34f |archive-date=28 September 2007}}</ref>

The trading of KL Infra was suspended from 15 May 2007.<ref>{{cite web |url= http://announcements.bursamalaysia.com/EDMS/EdmsWeb.nsf/LsvAllByID/685805F26B93EA8A482572DC0008E94F?OpenDocument |archive-url= https://web.archive.org/web/20160303165258/http://announcements.bursamalaysia.com/EDMS/EdmsWeb.nsf/LsvAllByID/685805F26B93EA8A482572DC0008E94F?OpenDocument |url-status= dead |archive-date= 3 March 2016 |title=Bursa Malaysia General Announcement: KL Infra - Suspension of trading |date=15 May 2007}}</ref> On the same day, KL Infra's board announced to Bursa Malaysia that it had formed the opinion that it was not solvent and would not be able to pay all its debts in full within a period not exceeding twelve months.<ref>{{cite web |url= http://announcements.bursamalaysia.com/EDMS/EdmsWeb.nsf/LsvAllByID/48256E5D00102DF3482572DC003892A8?OpenDocument |archive-url= https://web.archive.org/web/20160303214443/http://announcements.bursamalaysia.com/EDMS/EdmsWeb.nsf/LsvAllByID/48256E5D00102DF3482572DC003892A8?OpenDocument |url-status= dead |archive-date= 3 March 2016 |title=Bursa Malaysia Announcement: Default in Payment Pursuant to Practice Note No. 1/2001 of the Listing Requirements of Bursa Malaysia Securities Berhad |date=15 May 2007}}</ref> On 28 November 2007, [[Prasarana Malaysia]] signed a sale-and-purchase agreement with KL Monorail Systems, effectively making Prasarana the operator of KL Monorail, and resulting in Prasarana taking over the MYR 882 million BPM loan.{{Citation needed|date=June 2010}}