MENU

BURSA ANNOUNCEMENTS

Date : 24 June 2011

Initiation of civil suit by Beijing Puresino Boda Environmental Engineering Co Ltd ("BODA") against Puresino (Guanghan) Water Co Ltd ("Puresino Guanghan"), a subsidiary of Taliworks Corporation Berhad ("Civil Suit")

TALIWORKS CORPORATION BERHAD

TypeReply to query
Reply to Bursa Malaysia's Query Letter - Reference IDNM-110622-60787
SubjectInitiation of civil suit by Beijing Puresino Boda Environmental Engineering Co Ltd ("BODA") against Puresino (Guanghan) Water Co Ltd ("Puresino Guanghan"), a subsidiary of Taliworks Corporation Berhad ("Civil Suit")
DescriptionTALIWORKS CORPORATION BERHAD (“Taliworks” or “the Company”)
- Initiation of civil suit by Beijing Puresino Boda Environmental Engineering Co Ltd (“BODA”) against Puresino (Guanghan) Water Co Ltd (“Puresino Guanghan”), a subsidiary of Taliworks (“Civil Suit”)
Query Letter Contents We refer to your Company's announcement dated 21 June 2011 in respect of the
above matter.

In this connection, kindly furnish Bursa Malaysia Securities Berhad ("Bursa
Securities") with the following additional information for public release:-

1. The date on which the Civil Suit was served on Puresino Guanghan.
2. The details of the default or circumstances leading to filing of the Civil
Suit against Puresino Guanghan.
3. The expected losses, if any arising from the Civil Suit.

Please furnish Bursa Securities with your reply via an announcement within one
(1) market day from the date hereof.
Yours faithfully


LEE KUAN TECK
Head, Issuers
Restructuring, Listing Division
Regulation

TYE / NMA
c.c:- Head, Market Surveillance Department, Market Supervision Division,
Securities Commission (via fax)
We refer to Bursa Malaysia Securities Berhad's letter dated 23rd June 2011 (Ref No. NM-110622-60787) with regards to the Company's announcement dated 21st June 2011. We are pleased to furnish the following additional information in relation to the above matter for public release:
(i) The date on which the Civil Suit was served on Puresino Guanghan.

On 15th June 2011, the summons was served at Puresino Guanghan’s office in China. However, due to an error, the Court had re-couriered the summons on 17th June 2011 which was left at Puresino Guanghan’s office on Sunday, 19th June 2011. This summons, in the Mandarin language, was only received by the Company at its head office in Kuala Lumpur on 20th June 2011.
    The Company made the announcement on 21st June 2011 after translating and seeking clarification on the said summons.
      (ii) The details of the default or circumstances leading to filing of the Civil Suit against Puresino Guanghan.
        The details of the default or circumstances leading to the filing of the Civil Suit against Puresino Guanghan are as follows:
        During the period from August 2006 to March 2007, Puresino Guanghan borrowed RMB3,595,000 from BODA. As at 30th September 2008, Puresino Guanghan still owed BODA an amount of RMB545,000 after partial loan repayment, with an agreement to repay the same to BODA by 31st December 2010.
        Earlier, on 13th September 2007, BODA had advanced a separate shareholders loan of RMB2,670,000 to Puresino Guanghan with a repayment period commencing from 1st October 2008 to 31st December 2009. Due to Puresino Guanghan’s financial constraints, Puresino Guanghan had negotiated with BODA to repay the shareholders loan before 31st December 2010.
        In total, Puresino Guanghan owes BODA an amount of RMB3,215,000 and despite reminders given by BODA, Puresino Guanghan has been unable to repay the total loan amount as aforementioned to BODA due to financial constraints, leading to the filing of the Civil Suit against Puresino Guanghan.
      (iii) The expected losses, if any arising from the Civil Suit.
        In the event BODA is successful in its claim, Puresino Guanghan is required to settle the entire loan amounting to RMB3,215,000. The Company is expected to incur expenses such as solicitors fees and court fees to defend the Civil Suit which cannot be determined at this stage as the liability has not been established and the proceeding has not yet been concluded.

        The Company will make further announcements from time to time.

        This announcement is dated 24th June 2011.

        Announcement Info

        Company NameTALIWORKS CORPORATION BERHAD  
        Stock Name TALIWRK    
        Date Announced24 Jun 2011  
        CategoryGeneral Announcement
        Reference NoCC-110624-0F138

        Back