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We refer to your letters dated 24 December, 1999 and 6 January, 2000.
The Company wishes to announce the following material litigations against the Company and Tai Wah Ventures Sdn. Bhd. ("TWV"), a wholly-owned subsidiary of the Company:-
1.(a) On 22 May, 1998, TWV was served with a Writ of Summons by MBF Finance Berhad ("MBF") for term loan facilities of RM50,000,000 granted by MBF on 10 March, 1997. The Writ of Summons also mentioned Tai Wah Garments Manufacturing Berhad ("TWGB") as Second Defendent against a Corporate Guarantee given to MBF. The claim made by MBF was RM43.92 million made up of the principal and interest and TWGB's solicitors have filed a defence.
2.(a) On 17 September, 1998 TWV was served with a Writ of Summons by PB Securities Sdn. Bhd. ("PB") for a margin facilities of RM20,000,000 granted by PB on 7 November, 1997. TWGB was mentioned as Second Defendent for the Corporate Guarantee given to PB.
(b) The original claim made by PB as at 31 July, 1998 was RM18.13 million made up of the principal and interest.
(c) TWGB's solicitor had on 28 October, 1998 filed Defences on behalf of TWGB and TWV on this matter.