Court Summons Against Solid Panel Sdn Bhd & Batu Simen Indah Sdn Bhd ("Subsidiaries")
HIAP AIK CONSTRUCTION BERHAD |
Type | Reply to query |
Reply to Query Letter by KLSE reference ID | HS-030703-53292 |
Subject | Court Summons Against Solid Panel Sdn Bhd & Batu Simen Indah Sdn Bhd ("Subsidiaries") |
Contents :
With reference to your letter dated 15 July, 2003, pertaining to the above, we append here below the information as required:
RHB Bank Berhad ("RHB") - v- Batu Simen Indah Sdn. Bhd. ("BSI")
i. Interest rate claimed under the summons is 3.5% per annum above RHB’s prevailing Base Lending Rate ("BLR") calculated on a daily basis on the outstanding balance from date of expiry to date of regularisation of account.
ii. Failure by BSI to regularise and pay the amount of overdraft account and service the monthly overdraft interest required under the terms of the overdraft facility led to the cancellation and recall of the overdraft facility and all interest due and the filing of the summons.
iii. Total cost of Hiap Aik Construction Berhad’s ("HACB") investment in BSI is RM350,000. However, full provision for diminution in value of this investment had been made during the financial year ended 31st December 2002 and was reflected in the financial statements for that year.
iv. BSI is no longer in operation and therefore there would be little or no operational of financial impact other than the judgment sum.
v. Expected losses arising from the aforesaid summons would be to the extend of the outstanding amount plus accrued interest.
vi. To date, no action have been taken by BSI in respect of the summons and BSI will not be taking any actions with regards to the winding up petition as all companies under the HACB Group will eventually be wound up as per the Proposed Restructuring Scheme. Please refer to our announcement to the Exchange dated 14th November 2002 for the details of the Proposed Restructuring Scheme.
vii. Date of hearing of the summons was on 8th November 2002.
Clay Industries Sdn. Bhd. ("CI") - v - Solid Panel Sdn. Bhd. ("SP")
i. Interest rate claimed under the summons is 1.5% per annum calculated on the outstanding sum owed from 11 December, 2002 to date of full settlement.
ii. Failure by SP to pay for goods sold and delivered by CI led to the filing of the summons.
iii. Total cost of HACB’s investment in SP is RM1,000,000. However, full provision for diminution in value of this investment had been made during the financial year ended 31st December 2002 and was reflected in the financial statements for that year.
iv. SP ceased its operation in year 2002 and no longer in operation and therefore there would be little or no operational of financial impact other than the judgment sum.
v. Expected losses arising from the aforesaid summons would be to the extend of the outstanding amount plus accrued interest.
vi. To date, no action have been taken by SP in respect of the summons and SP will not be taking any actions with regards to the winding up petition as all companies under the HACB Group will eventually be wound up as per the Proposed Restructuring Scheme. Please refer to our announcement to the Exchange dated 14th November 2002 for the details of the Proposed Restructuring Scheme.
vii. Date of hearing of the summons was on 14th July 2003.
Query Letter Contents :
We refer to your announcement dated 10 July 2003 , in respect of the aforesaid
matter.
In this connection, kindly furnish the Exchange with the following additional
information for public release :
1. Interest rate claimed under the summons;
2. Details of default or circumstances leading to filing of the summons;
3. The total cost of investment in the Subsidiaries.
4. Financial and operational impact of the summons on the Group.
5. The expected losses, if any, arising from the summons.
6. Steps taken or proposed to be taken in respect of the summons.
7. Date of hearing.
Please furnish the Exchange with your reply within two (2) market days from the
date hereof.
Yours faithfully
INDERJIT SINGH
Senior Manager
Listing Operations
CKM/HSN
copy: Securities Commission
Announcement Info
Company Name | HIAP AIK CONSTRUCTION BERHAD |
Stock Name | HIAPAIK |
Date Announced | 17 Jul 2003 |
Category | General Announcement |
Reference No | HA-030717-67057 |