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We refer to your letter dated 28 December, 1999.
Autoways Holdings Berhad ("the Company") wishes to announce the following material litigation against the Company and Autoways Development Sdn. Bhd. ("ADSB"), a wholly-owned subsidiary of the Company.
1. On 22 May 1998, MBF Finance Berhad ("MBF") issued a Writ of Summons to ADSB for term loan facilities of RM50,000,000.00 granted by MBF on 17 March 1997. The Company was mentioned as Second Defendent for the Corporate Guarantee given to MBF. MBF has made a claim of approximately RM37 million which consists of the principal and interest. MBF has filed an application for Summary Judgement under Order 14 of the Rules of the High Court 1980 and the same was struck off on 11 February 1999 due to non attendance of MBF's lawyers.
Subsequently, MBF applied to reinstate the said Order 14 application and the solicitors of the Company and ADSB are currently resisting the same. The application to reinstate is fixed for hearing on 13 March 2000.
2. On 15 September 1998, PB Securities Sdn. Bhd. ("PB") issued a Writ of Summons to ADSB for a margin facilities of RM50,000,000.00 granted by PB on 7 October 1997. PB has made a claim of approximately RM51 million which includes principal and interest. PB has filed an application for Summary Judgement under Order 14 of the Rules of the High Court 1989 and the same is fixed for hearing on 16 March 2000.
