Contents :
We refer to your queries pertaining to the winding-up petition against Sawab Development Sdn Bhd dated 21 February 2000.
Our explanation to your queries raised in the said letter are as follows:
1. The winding-up petition was served on Sawab on 16 February 2000 by Mr Akbal Singh of Binarancang.
2. & 3. Charles Hector & Co, the lawyer acting for Mr Akbal Singh sent out a letter of demand for payment of the purported overdue professional fees of RM140,434.22 on 21 September 1999. Sawab tried to negotiate for a settlement with Mr Akbal Singh. Our lawyer, Messrs Kris, Edward & Derek has also written to Charles Hector indicating our willingness to settle the dispute amicably which unfortunately was rejected by Mr Akbal Singh. Subsequently a winding-up petition was served on Sawab for an amount of RM73,534.70. Sawab is disputing this claim as the services rendered by Mr Akbal Singh todate do not justify the claim.
4. There is no operational and financial impact on the Group as Sawab has not commenced development work on the project.
5. Sawab does not expect any loss save for the legal costs incurred.
6. & 7. Sawab is contesting the claim by Mr Akbal Singh and has obtained an interim injunction on the winding-up petition by Mr Akbal Singh valid until 1 March 2000. The Kuala Lumpur High Court Judge will hear further arguments from counsels for a permanent injunction on 1 March 2000.
Query Letter Contents :
We refer to the above and to your Company's announcement dated 18 February 2000
in respect of the aforesaid matter.
In this connection, kindly furnish the Exchange immediately with the following
additional information for public release:-
1 The date the winding-up petition was served on Sawab.
2 The amount claimed for under the petition.
3 The details of the default or otherwise leading to the filing of the
winding-up petition.
4 The operational and financial impact on the Group, if any, arising from the
aforesaid petition.
5 The expected losses, if any.
6 The steps that your Company will take with regards to the winding-up petition,
if any.
7 Duration of injunction obtained by Mr. Akbal Signh.
Yours faithfully
KUALA LUMPUR STOCK EXCHANGE
Lisa Lam
Senior Manager, Listing Operations
SA/LPY
c.c. Securities Commission
