Bursa Announcements

Date : 07 March 2001

MATERIAL LITIGATION

AUTOWAYS HOLDINGS BERHAD

TypeReply to query
Reply to Query Letter by KLSE reference IDJL-010228-6607
SubjectMATERIAL LITIGATION

Contents :

We refer to your letter dated 1 March 2001 and wish to inform the Exchange on the additional information:-


1. Operational and financial impact on the Group:-

      There is no further operational and financial impact on the Group as the claims had been fully provided for in the audited accounts for year ending 31 December 1998 and 31 December 1999 on the basis of prudent accounting principle. However, as per Notes 27(c) of the Notes to the Accounts in the 1999 Annual Report, the directors of Autoways Development Sdn. Bhd. ("ADSB") are of the opinion that these claims are not valid and ADSB is not liable for the amount. The Company is taking legal steps to dispute these claims.

2. The expected losses to the Group arising from the litigation:-
      If PB Securities Sdn. Bhd. ("PB") is successful in this legal suit, Autoways Holdings Berhad would incur a loss of RM51,681,264.14 together with interest and cost.

3. The particulars of the claim are as follows:-

The plaintiff claims:
      (a) the sum of RM51,681,264.14 as principal, interest and all other sums of money due and owing under the margin facility as at 31 July 1998.

      (b) interest on RM51,681,264.14 at the rate of 18% per annum from 1 August 1998 until the date of full payment and interest not paid at the end of each month is to be capitalised and added to the principal amount and thereafter further interest at 18% per annum until full payment;

      (c) costs;

      (d) such further and other relief.
4. Details leading to the issuance of the writ:-
      The plaintiff, PB is claiming a sum of RM51,681,264.14 together with interest and costs against the Company under an alleged letter of guarantee dated 7 October 1997 in respect of certain margin facilities allegedly granted by PB to ADSB. The plaintiff claims that ADSB has defaulted under the terms of the margin facility agreement and had called on the guarantee by the Company.
5. The steps taken and proposed to be taken in respect of the writ:-
      The Company has caused an appearance to be filed in Court and have instructed its solicitors to resist the claim.
6. The date of the writ:-

The Amended Writ of Summons is filed on 23 February 2001 and served on the Company on the same day.

Query Letter Contents :

We refer to your announcement dated 27 February 2001, in respect of the
aforesaid matter.
In this connection, kindly furnish the Exchange immediately with the following
additional
information for public release:
1. The operational and financial impact on the Group.
2. The expected losses to your group arising from the litigation.
3. The particulars of the claim, including the interest rate.
4. The details of the default or circumstances leading to the issuance of the
Writ of Summons.
5. The steps taken and proposed to be taken in respect of the Writ of Summons.
6. The date the Writ of Summons was served on your company.
Kindly furnish the Exchange with your reply within two (2) market days from the
date hereof.
Yours faithfully
KUALA LUMPUR STOCK EXCHANGE


TAN YEW ENG
Senior Manager, Listing Operations
TYE/JT
copy to: Securities Commission (via fax)



Announcement Info

Company NameAUTOWAYS HOLDINGS BERHAD  
Stock Name AUTOWAY    
Date Announced7 Mar 2001  
CategoryGeneral Announcement
Reference NoAH-010305-60680

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