Date : 07 August 2003

Winding Up Petition by KL High Court (Suit No. D6-28-717-2003)

YCS CORPORATION BERHAD

Type

Reply to query
Reply to Query Letter by KLSE reference IDHS-030804-55649
SubjectWinding Up Petition by KL High Court (Suit No. D6-28-717-2003)

Contents :

Further to the letter from the Exchange dated August 5, 2003, the company wishes to furnish the following additional information on the above matter:


1. Date of Presentation of Petition
The Petition was served to the company on July 31, 2003. An immediate announcement was made to the Exchange on the following market day on August 1, 2003.

2. Circumstances Leading to the Petition
Please see 'Table 1' shown in the Table Section below.

3. Financial and Operation Impact
The financial impact, if the petition is allowed, is the outflow of RM903,273.07 from the company. The petitioner has been put on legal notice by the company's solicitors that all losses and damages shall be claimed against the petitioner in the event that the appeal against the jugdement (Suit No. S3-22-813-2002) and/or the setting aside of the Winding Up Petition (Suit No. D6-28-717-2003) is allowed.

Operational impact and other damages arising from the above petition leading to the company's loss of contract revenue, weaker financial standing, higher cost of doing business and other consequential losses, can not be ascertained at this juncture. The impact and damages to the company will be dependent on sequential actions, if any, taken against the company by institutions / creditors / lenders and other interested parties.

4. Expected losses
The expected losses, at this juncture, is the interest and legal costs connected to the proceedings. As mentioned in point 3 above, other losses to the company, including consequential losses, can not be ascertained now.

5. Steps Taken by the Company
Firstly, an appeal has been filed against the judgment dated May 7,2003 (Suit No. S3-22-813-2002). The company's solicitors are in the process of preparing a written submission to be presented to the court by August 20, 2003. The hearing for the appeal is fixed on September 11, 2003.

Secondly, the company's solicitors are in the process of setting aside the Winding Up Petition (Suit No. D6-28-717-2003).

Thirdly, the company's solicitors have also put the petitioner on notice for all claims and damages in the event that the appeal against the Judgment (Suit No. S3-22-813-2002) and/or the application to set aside the Winding Up Petition (Suit No. D6-28-717-2003) is allowed.

12.02.2001
Petitioner entered into an agreement to lease a commercial premise from a subsidiary of the company.
06.04.2001
Petitioner purchased Travellators on behalf of the subsidiary company.
25.03.2002
Disagreements between the parties on the payment of installments, delivery and installation of the Travellators.
08.08.2002
Writ Summons and Statement of Claim served to the company, for payments made on behalf of the subsidiary company (Suit No. S3-22-813-2002)
04-06-2003
Judgment (Suit No. S3-22-813-2002, dated 07.05.2003, made in favour of the Petitioner) served to the company.
29.06.2003
Appeal filed by the company's solicitors against the decision (Suit No. S3-22-813-2002). Hearing fixed on 11.09.2003.
31.07.2003
While the appeal against the Judgment (Suit No. S3-22-813-2002) was still pending, the petitioner initiated the winding up proceeding against the company, The Winding Up Petition (Suit No. D6-28-717-2003) was received by the company on July 31, 2003.
06.08.2003
The company is in the process of setting aside the Winding Up Petition (Suit No. D6-28-717-2003)

Query Letter Contents :


We refer to your announcement dated 1 August 2003 , in respect of the aforesaid
matter.
In this connection, kindly furnish the Exchange with the following additional
information for public release :
1. The date of presentation of the winding up petition.
2. The details of the default or circumstances leading to the filing of the
winding-up petition against the Company.
3. The financial and operational impact of the winding up proceedings on the
Company.
4. The expected losses, if any arising from the winding up proceedings on the
Company.
5. Steps taken and proposed to be taken in respect of the winding up
proceedings by the Company.
Please furnish the Exchange with your reply within two (2) market days from the
date hereof.
Yours faithfully

INDERJIT SINGH
Senior Manager
Listing Operations
IS/WSW/HSN


Announcement Info

Company NameYCS CORPORATION BERHAD  
Stock Name YCS    
Date Announced7 Aug 2003  
CategoryGeneral Announcement
Reference NoYC-030807-54379