R&A Telecommunication Group Bhd
+603 55691801 +603 55695730

Company Name

R&A TELECOMMUNICATION GROUP BERHAD

Stock Name

RA

Date Announced

16 Oct 2015

Category

General Announcement for PLC

Reference Number

GA1-15102015-00018

MATERIAL LITIGATION R&A TELECOMMUNICATION GROUP BERHAD ("R&A" OR "THE COMPANY") – SHAH ALAM HIGH COURT SUIT NO. 22M-19-09/2015 ("HIGH COURT"): WRIT OF SUMMONS TOGETHER WITH STATEMENT OF CLAIM ("CLAIM") FILED BY MAYBANK ISLAMIC BERHAD ("MAYBANK"), AGAINST R&A TELECOMMUNICATION SDN. BHD. ("RASB") A WHOLLY OWNED SUBSIDIARY OF RA ("1ST DEFENDANT"); R&A TELECOMMUNICATION GROUP BERHAD ("2ND DEFENDANT"); AND MR. FRANCIS TAN HOCK LEONG ("3RD DEFENDANT").

Type

Announcement

Subject

MATERIAL LITIGATION

Description

R&A TELECOMMUNICATION GROUP BERHAD ("R&A" OR "THE COMPANY")

 - SHAH ALAM HIGH COURT SUIT NO. 22M-19-09/2015 ("HIGH COURT"): WRIT OF SUMMONS TOGETHER WITH STATEMENT OF CLAIM ("CLAIM") FILED BY MAYBANK ISLAMIC BERHAD ("MAYBANK"), AGAINST R&A TELECOMMUNICATION SDN. BHD. ("RASB") A WHOLLY OWNED SUBSIDIARY OF RA ("1ST DEFENDANT"); R&A TELECOMMUNICATION GROUP BERHAD ("2ND DEFENDANT"); AND MR. FRANCIS TAN HOCK LEONG ("3RD DEFENDANT").

The Board of Directors of R&A wishes to inform that RASB, a wholly-owned subsidiary of R&A, had on 13 October 2015 been served a Writ and Statement of Claim from Maybank Islamic Berhad (“the Plaintiff”).

1. The date of the presentation of the Writ and Statement of Claim and the date of the Writ and Statement of Claim was served on the listed issuer and its subsidiary.

The Writ is dated 30 September 2015 and the Statement of Claim is dated 29 September 2015. Both were served on RASB vide Messrs. Lee Hishammuddin Allen & Gledhill being the solicitors for the Plaintiffs on 13 October 2015.

2. The particulars of the claim under the Writ and Statement of Claim, including the amount claimed for and the interest rate

The claim pursuant to the Writ and Statement of Claim is as below:

(a) The sum of RM30,543,050.52

(b) Profit and ta'widh or Late Payment Charge at the respective rates set out in the Statement of Claim from 1 August 2015 until the date of full payment

(c) Cost; and

(d) Such further and other reliefs as they may deem fit.

3. The details of the default or circumstances leading to the filing of the Writ and Statement of Claim on the listed issuer and its subsidiary

The filing of the Writ and Statement of Claim is a result of RASB failing to settle the outstanding amount of RM 30,543,050.52 being the outstanding amount for various Islamic financing facilites granted by the Plaintiff including Murabahah Cashlines and Islamic Tradeliness Facilities.

4. Whether RASB is a major subsidiary of R&A

RASB is a major subsidiary of R&A.

5. The total cost of financial facilities

The total cost of financial facilities was RM27,500,870.54

6. The financial and operational impact of the Writ and Statement of Claim on the Group.

The financial of operational impact of the Writ and Statement of Claim on the group will be severe.

7. The expected losses, if any, arising from the Writ and Statement of Claim

The Writ and Statement of Claim does not have a profit and loss impact but it will severely impact the group cash position.

8. The steps taken and proposed to be taken by R&A in respect of the Writ and Statement of Claim

R&A is expected to address this issue via the regularisation plan. Among the steps to be taken is the re-negotiation on the settlement of the loan with Maybank.

Further announcement on the development of the above matter will be made to Bursa Malaysia Securities Berhad in due course.

This announcement is dated 16 October 2015.

GROWTH

R&A is aggressively expanding not only in the local Malaysian market.....
More

DIVERSIFY

R&A’s diversification & expansion.....

More

CLIENT

R&A has a solid background and reputation with Operators and MNC vendors.....
More