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

Company Name

R&A TELECOMMUNICATION GROUP BERHAD

Stock Name

RA

Date Announced

15 Jul 2016

Category

General Announcement for PLC

Reference Number

GA1-14072016-00089

MATERIAL LITIGATION R&A TELECOMMUNICATION GROUP BERHAD ("R&A" OR "THE COMPANY") KUALA LUMPUR HIGH COURT WINDING UP PETITION NO: WA-28NCC-541-06/2016 FILED BY TECSYS PRODUCT SDN. BHD. (TECSYS OR THE "PETITIONER"), AGAINST R&A TELECOMMUNICATION SDN. BHD. ("RASB" OR THE RESPONDENT), A WHOLLY OWNED SUBSIDIARY OF R&A

Type

Announcement

Subject

MATERIAL LITIGATION

Description

R&A TELECOMMUNICATION GROUP BERHAD ("R&A" OR "THE COMPANY") KUALA LUMPUR HIGH COURT WINDING UP PETITION NO: WA-28NCC-541-06/2016 FILED BY TECSYS PRODUCT SDN. BHD. (TECSYS OR THE "PETITIONER"), AGAINST R&A TELECOMMUNICATION SDN. BHD. ("RASB" OR THE RESPONDENT), A WHOLLY OWNED SUBSIDIARY OF R&A

 

INFORMATION ON THE WINDING-UP PETITION

  1. Date of the presentation of the winding-up petition and the date the winding-up petition was served

The winding-up petition against RASB was presented to the Kuala Lumpur High Court [Winding-up Petition No. WA-28NCC-541-06/2016] by Tecsys on 27 June 2016 and a copy was served on RASB on 11 July 2016. The case management is fixed for 19 July 2016.

(b) The particulars of the claim under the winding-up petition

  1. That RASB may be wound up by the Court under provisions of the Companies Act, 1965;
  2. That an Official Receiver of the States of Malaya be appointed as the Liquidator of RASB;
  3. That the costs of this Petition be paid out of the assets of RASB; and
  4. That such other order as may be made in the premises as shall be just.
  5. Details of the default or circumstances leading to the filing of the winding-up petition against RASB

RASB was indebted to Tecsys as follows:-                       

(i) The sum of RM93,370.00 together with interest at the rate of 1.5% per month (amounting to RM7,432.05 for the period from 14 July 2014 till 31 August 2015) from 14 July 2014 till full settlement; and

(ii) costs of RM1,282.00.

RASB had received a notice pursuant to Section 218 of the Companies Act, 1965 dated 3 May 2016 from Messrs. Siva, Thurai, Mariany & Co., being the solicitors for Tecsys (“Notice”), demanding for the above payment.

More than twenty-one (21) days have elapsed since Tecsys served the said Notice but RASB has failed, refused or neglected to pay or failed, refused or neglected to secure or compound to the reasonable satisfaction of Tecsys. Tecsys has claimed that RASB is, therefore, unable to pay its debt and that RASB is liable to be ordered to be wound up. 

(d) Confirmation on status of RASB as a major subsidiary of R&A, and total cost of investment in R&A

RASB is not major subsidiary of R&A and the total cost of investment in RASB is RM69,800,000, of which the amount has been fully impaired during financial year ended 31 December 2015.

  1. Financial and operational impact of the winding-up proceedings on R&A Group

The financial and operational impact of the winding-up proceedings on the Group is minimal as RASB has ceased operations since June 2015.

  1. Expected losses arising from the winding-up proceedings

The expected losses, if any, arising from the winding-up proceedings is minimal as RASB has ceased operations since June 2015.

(g) Steps taken or proposed to be taken by R&A in respect of the winding-up proceedings

R&A is seeking the necessary legal advice to remedy this situation. Further announcement on the development of the above matter will be made to Bursa Malaysia Securities Berhad in due course.

This announcement is dated 15 July 2016

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