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Annual Report
2018
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Announcements

Date: 27 July 2017

MATERIAL LITIGATION BERTAM ALLIANCE BERHAD (BAB or the Company) UPDATE ON ADJUDICATION PROCEEDINGS ISSUED UNDER THE CONSTRUCTION INDUSTRY PAYMENT & ADJUDICATION ACT 2012 (CIPAA) TO THE COMPANYS WHOLLY-OWNED SUBSIDIARY, BERTAM DEVELOPMENT SDN. BHD.


Type Announcement
Subject MATERIAL LITIGATION
Description BERTAM ALLIANCE BERHAD (BAB or the Company) UPDATE ON ADJUDICATION PROCEEDINGS ISSUED UNDER THE CONSTRUCTION INDUSTRY PAYMENT & ADJUDICATION ACT 2012 (CIPAA) TO THE COMPANYS WHOLLY-OWNED SUBSIDIARY, BERTAM DEVELOPMENT SDN. BHD.

Reference is made to the announcements made on 6 October 2016 and 28 February 2017 respectively.

The Board of Directors of Bertam Alliance Berhad ("BAB" or "the Company") wishes to announce that a wholly-owned subsidiary of the Company, Bertam Development Sdn Bhd ("BDSB") had on 26 July 2017 been served with the Statutory Notice dated 25 July 2017 pursuant to Section 466(1)(a) of the Companies Act, 2016 by Messrs. T G Lee & Associates, the Solicitors who act on behalf of R & C Cergas Teguh Sdn Bhd ("RCCTSB") demanding for the payment as per the Adjudicator decision dated 19 February 2017 (wherein an enforcement Order has been granted on 5 June 2017 by Court) in the sum of RM4,568,203.47 as at 25 July 2017 and continuing interest at the rate of 7.65% per annum on RM4,111,267-73 from 26 July 2017 until full and final realization of the total sum due and owing to RCCTSB.

In the event that BDSB failed to pay RCCTSB at the expiration of twenty-one (21) days from the date of Statutory Notice served, BDSB will be deemed pursuant to Section 466(1)(a) of the Companies Act, 2016 and the winding up proceedings will be commenced against BDSB.

The Company wishes to announce that it will defend the proceedings and will contest any winding-up proceedings that may be initiated.

BDSB is a major subsidiary of BAB and the total cost of investment in BDSB is RM70 million.

The Company has filed in the court of appeal on 10 July 2017 to appeal against the Adjudicator decision dated 19 February 2017 and the case has fixed for case management on 7 August 2017.

The company will seek necessary legal advice to resolve and/or defend against the above matter.

Further announcement on the developments of the above matter will be made to Bursa Malaysia Securities Berhad in due course.

This announcement is dated 27 July 2017.





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