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

Company Name

R&A TELECOMMUNICATION GROUP BERHAD

Stock Name

RA

Date Announced

19 Jan 2016

Category

General Announcement for PLC

Reference Number

GA1-18012016-00070

MATERIAL LITIGATION R&A TELECOMMUNICATION GROUP BERHAD ("R&A" OR "THE COMPANY") - KUALA LUMPUR SESSION COURT SUMMONS NO. WA-52NCC-22-01/2016: WRIT OF SUMMONS AND STATEMENT OF CLAIM FILED BY ORIX CREDIT MALAYSIA SDN. BHD. ("ORIX") ("THE PLAINTIFF"), AGAINST R&A TELECOMMUNICATION SDN. BHD. ("RASB") A WHOLLY OWNED SUBSIDIARY OF R&A ("DEFENDANT-DEFENDANT").

Type

Announcement

Subject

MATERIAL LITIGATION

Description

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

- KUALA LUMPUR SESSION COURT SUMMONS NO. WA-52NCC-22-01/2016: WRIT OF SUMMONS AND STATEMENT OF CLAIM FILED BY ORIX CREDIT MALAYSIA SDN. BHD. ("ORIX") ("THE PLAINTIFF"), AGAINST R&A TELECOMMUNICATION SDN. BHD. ("RASB") A WHOLLY OWNED SUBSIDIARY OF R&A ("DEFENDANT-DEFENDANT").

The Board of Directors of R&A wishes to inform that RASB, a wholly-owned subsidiary of R&A, had on 18 January 2016 been served a Writ of Summons and Statement of Claim by ORIX.

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

The Writ of Summons and Statement of Claim is dated 4 January 2016. The same was served on RASB and the Company vide Messrs. K L Wong being the solicitors for the Plaintiff on 18 January 2016.

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

The claims pursuant to the Writ of Summons and Statement of Claim are as below:-

(a) The sum of RM208,020.27 as at 18 September 2015;

(b) Late payment interest at a rate of 0.065% per day on the amount of RM195,385.18 from 19 September 2015 until the date of full payment;

(c) Cost of action; and

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

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

The filing of the Writ of Summons and Statement of Claim is a result of RASB failing to settle the outstanding amount of RM208,020.27 being the outstanding amount for the hiring of goods.

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

RASB is a wholly-owned subsidiary of R&A.

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

The financial and operational impact of the Writ of Summons and Statement of Claim on the Group is limited to the amount claimed for as per the Writ of Summons and Statement of Claim.

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

The Writ of Summons and Statement of Claim is not expected to result in any losses but it may have an impact on the Company’s cash position.

7. The steps taken and proposed to be taken by RASB in respect of the Writ of Summons and Statement of Claim

R&A is expected to address this issue via a regularisation plan. Once the regularisation plan is finalised, a settlement is proposed to be put forward to our creditors.

This announcement is dated 19 January 2016.

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