Contents :
We refer to your query dated 19 May 2004 on the above subject.
The total claim relating to the Petition amounts to only RM54,577.27, which is very minor and hence the Directors of L&G are of the opinion that the Winding-up Petition on BSB will not have any financial and operational impact on the L&G Group.
BSB is not a major subsidiary of L&G in either profit contribution or in total assets employed.
Whilst we have appealed this Petition, we are confident that we can settle this matter without any detrimental effect.
Query Letter Contents :
We refer to your announcement dated 18 May 2004, in respect of the aforesaid
matter.
In this connection, kindly furnish the Exchange immediately with the following
additional information for public release:
1. The expected losses, if any arising from the winding-up proceedings;
2. Where BSB is a major subsidiary, a statement whether the Company is solvent
i.e. that no contingent or other liability has become or is likely to become
enforceable within the period of twelve (12) months from the date thereof which
will or may affect the ability of the Group or the Company to meet their
obligations as and when they fall due;
3. Where BSB is a major subsidiary, an undertaking to provide to the Exchange
a solvency declaration executed by the directors of the Company within seven
(7) days (where such declaration can be made).
Please note that the contents of the announcement must be endorsed by the board
of directors of the Company.
Yours faithfully
WAN RAHIEL HJ WAN RAMLI
Manager
Issues & Listing
Group Regulations
WR/KHB
Copy to: Securities Commission (via fax)