Restraining and Stay Order ("RO") and proposed restructuring scheme ("proposed scheme") pursuant to Section 176(10) of the Companies Act, 1965
| L&M CORPORATION (M) BHD |
Contents :
Your letter dated 30th May 2000 refers.
Pursuant to the announcement made on 29th May 2000, we forward herewith further clarification pertaining to the above.
The operations of L&M Group of Companies have deteriorated during financial year ended 31st December 1999. As reported in the audited accounts for the same financial year end, the Group has incurred an operating loss of RM180,472,548. The operating loss was primarily due to high financial cost on borrowing, provision for doubtful debts and cost over-run on projects. This adversity has resulted in the Group inability to meet the liabilities when it falls due. Thus demand letters and legal proceedings have been initiated by bankers, financial institutions and creditors against L&M Corporation (M) Bhd and its subsidiary companies for debts overdue.
In these regards, the Board of Directors is of the opinion that it was expedient to seek protection from the Court against creditors’ winding up proceedings in the form of RO. With the protection in-place the management can now focus on the Proposed Scheme.
Query Letter Contents :
We refer to your announcement dated 29 May 2000 in respect of the aforesaid
matter.
In this connection, kindly furnish the Exchange immediately for public release
the details of the events leading to the grant of the court order.
Yours faithfully
KUALA LUMPUR STOCK EXCHANGE
Tan Yew Eng
Senior Manager, Listing Operations
LPY
c.c. Securities Commission
Announcement Info
| Company Name | L&M CORPORATION (M) BHD |
| Stock Name | L&MCORP |
| Date Announced | 1 Jun 2000 |
| Category | General Announcement |
| Reference No | CS-000601-59871 |
