DEFAULT IN PAYMENT PURSUANT TO PRACTICE NOTE 1 OF THE MAIN MARKET LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD
General Announcement
Reference No NK-100701-62824
Company Name
:
NGIU KEE CORPORATION (M) BERHAD
Stock Name
:
NGIUKEE
Date Announced
:
01/07/2010
Type
:
Announcement
Subject
:
NGIU KEE CORPORATION (M) BERHAD ("NKCB" or "the Company")
- DEFAULT IN PAYMENT PURSUANT TO PRACTICE NOTE 1 OF THE MAIN MARKET LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD
Contents
:
1. INTRODUCTION
Further to our announcement dated 11 August 2009, the Board of Directors of NKCB (“the Board”) wishes to announce that as at to date the Company has paid a sum of RM4,320,240 million and leaving a balance of RM13,958,839 million as at 30 June 2010.
The Company wishes to announce that Ngiu Kee Sdn Bhd (“NKSB”) a wholly owned subsidiary of the Company has failed to meet the payment of RM13,958,839 due and payable on 30 June 2010 to Bank Islam Malaysia Berhad.
The Company is required to make an announcement pursuant to Paragraph 2.1 (d) of Practice Note 1 (“PN 1”) of the Main Market Listing Requirements (“Listing Requirements”) of Bursa Malaysia Securities Berhad (“Bursa Securities”)
2. DETAILS OF DEFAULT
The Company provides herewith the following details in compliance with Paragraph 3.1 of PN1 of the Listing Requirement of Bursa Securities.
a) Date of Default
The date of default is 30 June 2010.
b) Reason for the Default
The Company does not have sufficient funds to meet the payment due amounting to RM13,958,839 million as at 1st July 2010.
c) Measures by the Company to address the Default
Prior to the default in payment, the Company has been in regular negotiations with the Financial Institution to reschedule the loan. The Company will continue to engage the Financial Institution for their consideration to agree to our proposal.
d) The legal implications of the Default
The default will empower the debenture holder to appoint a Receiver to NKSB and the Board will require legal advice to determine the extent of legal implications and will make the relevant announcement once such advice is obtained.
e) The business, financial and operational impact of the Default on the Company
The Company is unable to ascertain the business, financial and operational impact of the default on the Company for the time being.
f) In the event the Default is in respect of secured loan stocks or bonds, the lines of action available to the guarantors or security holders against the listed issuer.
The event of default is not in respect of secured loan stocks or bonds.
g) In the event the Default is in respect of payments under a debenture, to specify whether the Default will empower the debenture holder to appoint a receiver or receiver and manager.
The default will empower the debenture holder to appoint a Receiver to NKSB.
h) Whether the Default constitutes an event of default under a different agreement for indebtedness (“Cross Default”) and the details for such other default, where applicable.
The default of payment may trigger a cross default by other banks as indicated in Table A.
i) Where the default is in respect of a subsidiary or associated company, a confirmation as to whether the subsidiary or associated company is a major subsidiary or major associated company, as the case may be.
The default occurred with respect to the repayment of sum due on banking facilities of a wholly owned subsidiary of the Company.
j) Where the Default is in respect of the Company, major subsidiary or major associated company, as the case may be, a statement as to whether the Company is solvent (“Solvency Declaration”)
The Directors are of the opinion that the Company will not be able to meet all its debts to the Financial Institution as and when they fall due within the period of 12 months from the date of this announcement. Save for the default with the Financial Institution, the Company will be able to meet all the trading commitment to its suppliers.
k) Other Information
The Company shall update on a monthly basis the status of the Default and the steps taken to address the Default until such time when the Default is remedied.
Announcement Details :
Table A
List of Credit Facilities as at 1 July 2010
Ngiu Kee Sdn Bhd
Financing Institution
Type of Facility
Amount in Arrears *
CIMB Bank Berhad
i)Bank Overdraft
RM8,020,473.00
ii) Trust Receipt/Bankers’ Acceptance
RM25,371,526.00
Total
RM34,391,999.00
* There is a pending legal suit taken by NKSB against CIMB Bank Berhad
