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Date : 12 July 2000

NOTICE OF APPOINTMENT OF SPECIAL ADMINISTRATORS OVER SUBSIDIARIES OF AUSTRAL AMALGAMATED BERHAD (SPECIAL ADMINISTRATORS APPOINTED) 1. DANAU KOTA DEVELOPMENT SDN BHD (COMPANY NO. 119720-H) 2. PROFOUND VIEW SDN BHD (COMPANY NO. 333076-W) 3. LIKAS VIEW SDN BHD (COMPANY NO. 016908-P) ("COLLECTIVELY KNOWN AS THE COMPANIES")

AUSTRAL AMALGAMATED BERHAD

TypeReply to query
Reply to Query Letter by KLSE reference IDMJ-000710-58345
SubjectNOTICE OF APPOINTMENT OF SPECIAL ADMINISTRATORS OVER SUBSIDIARIES OF AUSTRAL AMALGAMATED BERHAD (SPECIAL ADMINISTRATORS APPOINTED)
1. DANAU KOTA DEVELOPMENT SDN BHD (COMPANY NO. 119720-H)
2. PROFOUND VIEW SDN BHD (COMPANY NO. 333076-W)
3. LIKAS VIEW SDN BHD (COMPANY NO. 016908-P)
("COLLECTIVELY KNOWN AS THE COMPANIES")

Contents :

On 9 September, 1999, Mr. Lim Tian Huat and Mr. George Koshy of Arthur Andersen & Co. were appointed by Pengurusan Danaharta Nasional Berhad ("Danaharta") to act as the Special Administrators ("SAs") of Austral Amalgamated Berhad ("AAB") pursuant to Section 24 of the Pengurusan Danaharta Nasional Berhad Act 1998 ("Danaharta Act").


The SAs now wish to reply to the Kuala Lumpur Stock Exchange ("KLSE")'s query pursuant to its letter dated 10 July, 2000, reference MJ-000710-58345.


In response thereto, we set out below our comments.

1. Events leading to the appointment of Special Administrators

Pengurusan Danaharta National Berhad ("Danaharta") has acquired various loans provided to the Companies. Danaharta recommended the appointment of Special Administrators to the Companies pursuant to section 24 of the Pengurusan Danaharta Nasional Act 1998 ("the Act").

Also, pursuant to section 25 of the Act, Danaharta may recommend the appointment of Special Administrators, if Danaharta believes that it would serve public interest to do so or one or both of the following purposes could be achieved:

(a) The survival of the Companies and the whole or any parts of its assets as a going concern; and
(b) A more advantageous realisation of the Companies assets would be achieved than on winding-up.

2. Terms of Reference of the Special Administrators

The terms of reference of the Special Administrators are generally set out in sections 28 to 56 of the Act. The specific powers of the Special Administrators are set out in the Second Schedule of the Act are as follows :

The Special Administrators will assume control and management of the assets and affairs of the Companies with effect from the date of their appointment. The Special Administrators will carry out an assessment on, inter-alia the viability of the operations and business of the Companies and will thereafter prepare a workout proposal. The Independent Advisor will then examine the workout proposal, taking into consideration the interest of all creditors (whether secured or unsecured) and shareholders. If Danaharta approves the workout proposal prepared by the Special Administrators, the latter will call for a meeting of the secured creditors to consider and vote on the proposal. A majority in value of secured creditors present and voting at the said meeting must approve the proposal before it can be implemented. Relevant regulatory approvals (such as from the Securities Commission) must also be obtained.

3. Financial impact on the group

There will be no effect on the financial position of the Group arising from the appointment of the Special Administrators.

4. Effect on business operations

The Special Administrators will maintain normal business operations pending the formulation of the workout proposal. There is no material change in business operations envisaged at this juncture.

5. Steps taken or proposed to be taken with regard to the appointment of Special Administrators

The Steps taken or proposed to be taken with regards to the aforesaid appointment of the Special Administrators are set out in paragraph (2) above.

Query Letter Contents :

We refer to your announcement on 7 July 2000 in respect of the above.
In this connection, kindly furnish the Exchange with the following additional
information for public release:-
Events leading to the appointment of SAs.
Terms of reference of the SAs.
Financial impact on the group.
Effects on the business operations.
Steps taken or proposed to be taken with regard to the appointment of SAs.

Please furnish the Exchange with your reply within two (2) market days from the
date hereof.
Yours faithfully
KUALA LUMPUR STOCK EXCHANGE

INDERJIT SINGH
Senior Manager, Listing Operations
IS/CMJ



Announcement Info

Company NameAUSTRAL AMALGAMATED BERHAD  
Stock Name A AMAL    
Date Announced12 Jul 2000  
CategoryGeneral Announcement
Reference NoCS-000712-7F5CA

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