Survival now hinges on the rescue plan put together by Credit Suisse First Boston. Renong executive chairman Halim Saad also announced a reorganization. Some 50 company heads currently report directly to Halim. Renong will also sell assets. Levies due the government when PLUS's tax holiday ends in 2007 will also be used for the bonds.
Analysts say the toll company's future earnings stream is strong enough to service the obligations.
But they wonder whether foreign creditors will accept the ringgit-denominated instruments, since the currency can no longer be traded overseas because of Malaysia's controls. A lot will also depend on the discount and other terms. We do not see any problems. But Mahathir appears to be keeping his options open. Anwar denies giving Renong the go-ahead.