Olympia wins one-year extension on RM100m loan as first-half loss narrows
What's the deal? Olympia Industries BerhadDealroom has a profile for this one. Try Dealroom → has secured a one-year extension on its RM100 million term loan, pushing the repayment deadline to August 28, 2027, according to a Bursa MalaysiaDealroom has a profile for this one. Try Dealroom → filing. The Malaysian group also won a temporary waiver on key financial covenants, easing a near-term liquidity crunch that had raised doubts about its ability to continue as a going concern.
Why now? The restructuring addresses an imminent repayment that had come due. A RM5 million partial repayment is still due by August 2026, with the remaining RM100 million principal now extended to 2027. The group also secured relief from its interest service coverage ratio requirement until January 1, 2027, after an earlier waiver lapsed.
By the numbers: For the six months ended June 30, 2026, Olympia reported a net loss of RM6.6 million, an improvement of 16.6% from the RM7.9 million loss a year earlier. Revenue rose 13.8% to RM47.1 million from RM41.4 million.
What's driving it? The gaming division remained the main earnings driver, contributing RM37.8 million in revenue and a segment profit of RM2.1 million, aided by a lower payout ratio of 59.3% in the second quarter. Property development swung to a RM1.4 million profit from a RM1.5 million loss, boosted by a one-off inventory sale.
What could go wrong? Losses in the leasing division widened to RM5.2 million from RM4.3 million on lower occupancy at Menara Olympia. The group's second-quarter net loss deepened to RM5.0 million from RM1.6 million in the prior quarter, and current liabilities exceeded current assets by RM175.6 million as at June 30, 2026.
What's the endgame? The filing still flags "material uncertainties which may cast significant doubt" on the group's ability to continue as a going concern. Directors have earmarked the disposal of land carried at RM57.2 million as part of the extension terms and identified unencumbered assets worth RM151.5 million that could be pledged or sold to cut borrowings.
The signal: The extension buys Olympia time on debt, but the group remains loss-making, pays no dividend, and leans on asset sales to manage its balance sheet. The renewed going-concern warning will keep the investment case under pressure.
Read more: minichart.com.sg
Image credit: Jorge Lascar
