CANDYMAKER Khee San Bhd and its subsidiary have been sued for defaulting on a RM4.7 mil loan by Alliance Bank Malaysia Bhd (ABMB).
Khee San in a June 23 bourse filing said its board of directors had received on June 22 a writ of summons as well as a statement of claim filed by ABMB’s lawyers on the group as well as its wholly-owned unit Khee San Food Industries Sdn Bhd.
ABMB’s claims against Khee San and Khee San Food Industries are as follows:
- The total sum of RM4,701,013.30 as at 18 May 2020
- Interests on the sum of RM4,277,000.00 at the rate of 4% per annum above for ABMB’s Base Lending (“BLR”) (presently the ABMB’s BLR is 5.67% per annum as at 18 May 2020 subject to fluctuations at the Plaintiff’s absolute discretion) and penalty interest at the rate of 1.00% per annum calculated on daily rest from 19 May 2020 until the date of full settlement
- Reimbursement of the Plaintiff’s legal cost of RM7,497.70
- Costs against KSB on a full indemnity basis, and
- Any other relief or remedy that the Honourable Court deems fit.
Khee San said all parties involved had appeared before the court yesterday for case management via e-Review.
The court had given directions as follows:
- Defendants (Khee San) to enter defence on or before July 14
- The Plaintiff (Alliance Bank) to file the reply to the statement of defence on or before August 4, and
- Any interlocutory applications to be filed on or before August 18.
According to Khee San, case management had been fixed for Aug 18 at the Kuala Lumpur High Court.
Khee San said that it had intended to restructure its debt facilities through a previously announced corporate exercise on Dec 2, 2019, and Jan 6 this year.
“The company had at that time engaged in discussions with all its bankers including ABMB. However, given the recent departure of the previous subscriber as per announcement dated June 3, 2020, the previous proposed settlement efforts had lapsed accordingly resulting in the company in this default in payment position,” Khee San said.
Khee San’s shares remained flat at 27 sen at the midday break today. – June 24, 2020
