R&A Telecommunication Group Bhd
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Company Name

R&A TELECOMMUNICATION GROUP BERHAD

Stock Name

RA

Date Announced

17 Mar 2016

Category

General Announcement for PLC

Reference Number

GA1-17032016-00035

MATERIAL LITIGATION R&A TELECOMMUNICATION GROUP BERHAD ("R&A" OR "THE COMPANY") - SHAH ALAM HIGH COURT ORIGINATING SUMMONS NO. 24MFC-318-11/2015: SEALED ORDER SERVED BY MAYBANK ISLAMIC BERHAD ("THE PLAINTIFF"), ON R&A TELECOMMUNICATION SDN. BHD. ("RASB"), A WHOLLY OWNED SUBSIDIARY OF R&A ("DEFENDANT").

Type

Announcement

Subject

MATERIAL LITIGATION

Description

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

- SHAH ALAM HIGH COURT ORIGINATING SUMMONS NO. 24MFC-318-11/2015: SEALED ORDER SERVED BY MAYBANK ISLAMIC BERHAD ("THE PLAINTIFF"), ON R&A TELECOMMUNICATION SDN. BHD. ("RASB"), A WHOLLY OWNED SUBSIDIARY OF R&A ("DEFENDANT").

  1. 1.   Introduction

Further to the Company’s announcements dated 16 October 2015, 21 October 2015 and 1 December 2015 in relation to the Writ of Summons together with Statement of Claims filed by the Plaintiff, the Board of Directors of R&A wishes to announce that RASB had on 15 March 2016 been served the Sealed Order for the said civil suit from Messrs. Lee Hishammuddin Allen & Gledhill, the solicitors acting for the Plaintiff (“Sealed Order”).

The Plaintiff had granted various Islamic financing facilites including Murabahah Cashlines and Islamic Tradelines Facilities to RASB. The said financing facilities are secured by, amongst others, a charge on all the properties held under HS(D) No. 102253, PT No. 16067, Mukim Damansara, Daerah Petaling, Selangor (“the Properties”) registered in the name of RASB.

Based on the Sealed Order, the High Court of Malaya, Shah Alam has allowed the Plaintiff's application to dispose of the Properties via a public auction to fully settle the amount owing to the Plaintiff as at 4 February 2016 amounting to RM31,236,121.05 together with further profit and ta'widh or Late Payment Charge on the amount owing at the respective rates set out in the Sealed Order.

The auction will be conducted at the High Court of Malaya, Shah Alam on 5 May 2016 at 9:00 a.m. or at any other time as may be deemed suitable.

  1. 2.   The date the Sealed Order was served on the Company, its subsidiary or major associated company.

15 March 2016

  1. 3.  The details of the default or circumstances leading to the serving of the Sealed Order against the Company, its subsidiary or major associated company.

The serving of the Sealed Order is a result of RASB failing to settle the outstanding amount of RM31,236,121.05 for various financing facilities granted by the Plaintiff.

RASB is a major subsidiary of R&A.

The operational impact of the Sealed Order on the Group is minimal as the business activities that were being carried out at the Properties have ceased. Financially, the Group will record a gain or loss on disposal depending on whether the sale price of the Properties at the auction is higher or lower than the carrying value.

The expected losses, if any, will depend on whether the Properties are sold at the auction for less than its carrying value.

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

This announcement is dated 17 March 2016.

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