KUALA LUMPUR: Utusan Melayu (M) Bhd has defaulted on a RM2.9mil loan.

“Due to financial constraints the company is not able to meet its obligation to repay the Affin Islamic Bank Bhd and therefore had defaulted in profit and principal payment to the bank,” it said.

Utusan was supposed to settle the loan 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.