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OTHERS KONSORTIUM TRANSNASIONAL BERHAD ("KTB" OR THE "COMPANY") - UPDATE ON PRACTICE NOTE ("PN") 17 STATUS

KONSORTIUM TRANSNASIONAL BERHAD

Type Announcement
Subject OTHERS
Description
KONSORTIUM TRANSNASIONAL BERHAD ("KTB" OR THE "COMPANY") - UPDATE ON PRACTICE NOTE ("PN") 17 STATUS

We refer to the announcement dated 14 April 2020 wherein the Company had announced that it was classified as an affected listed issuer as it has triggered criteria Paragraph 2.1(e) of PN17 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad ("Bursa Securities")("MMLR")("First Announcement").

1. INTRODUCTION

The Company wishes to announce that KTB has not been fully meeting its repayment obligations under the Malaysia Debt Ventures Berhad's ("MDV") financing. Additionally, one of KTB's credit facility with Pembangunan Leasing Corporation Sdn Bhd ("PLC") had also been in default resulting in PLC commencing litigation process for the said PLC's facility.

Further details of the MDV financing and PLC facility are as set out in Section 2 below.

2. BACKGROUND OF CREDIT FACILITIES AND DEFAULTS

a) Master Facility Agreement with MDV

KTB had entered into a Master Facility Agreement with MDV on 4th August 2014 for the purpose of financing the purchase of buses to be used under the Mybus project in Seremban as KTB's subsidiary, Cityliner Sdn Bhd ("Cityliner") had duly secured the contract to provide inter-city bus service in Seremban under the contract entered with Suruhanjaya Pengangkutan Awam Darat (SPAD) ("Project").

MDV is aware that the said facility is obtained for the said Project and the revenue generated from the said Project, which is the payment received from the Government for the service rendered for the said bus service, will be primarily be used first and foremost, for the settlement of the installment payments under the Master Facility Agreement. This is the understanding that the Company has with MDV in respect of the payments under the Master Facilty Agreement as it is a project based financing.

Cityliner has been submitting its claims to the Government for the payment of the services duly rendered on monthly basis as stipulated under its contract with SPAD, however the disbursement of payments due to Cityliner were constantly delayed. 

As announced in the announcement dated 13 October 2021 made by AmInvestment Bank Berhad on behalf of KTB, the proceeds from the Proposed Placements (as defined therein) will primarily be used to fully settle all payments under the Master Facility Agreement which will result in the early termination of the said agreement pursuant to the early settlement to be made by KTB.

As at the date of this announcement MDV has not commenced any litigation process against the Company.

b) Equipment Lease Agreements with PLC

KTB's subsidiary Transnasional Express Sdn Bhd ("TESB") had entered into various Equipment Lease Agreements with PLC dated 14 November 2006, 15 November 2006 and 28 February 2007 (collectively to be referred as "Lease Agreements").

On 25 November 2019, PLC had issued its notice of demand against TESB for the outstanding sum of RM490,279 under the Leasing Agreements. This event of default was not announced by KTB as the default payment in respect of the said facilities was less than 5% of the net assets of KTB based on the latest announced financial statements of KTB. Subsequently the amount claimed was reduced accordingly by payments made by TESB.

On 2 September 2021, PLC issued a Writ of Summons against TESB demanding the settlement of payment of RM248,564.43 under the Lease Agreements. Prior to the serving of the Writ of Summons, KTB had initiated a negotiation with PLC to fully settle the Lease Agreements entered by TESB and 3 other of its subsidiaries  as part of the measures undertaken by the Company to improve its financial situation. The negotiation was for the waiver or reduction of interest payments in return for full settlement by KTB.

On 18 October 2021 PLC issued their letter of settlement ("Letter of Settlement") offering for the sum of RM1,245,872 as the full and final settlement of the Lease Agreements entered by the four companies including TESB. The Letter of Settlement and the offer therein was accepted by KTB and the payment of RM1,245,872 was duly made on 21 October 2021 for the settlement of the same. 

KTB had made full settlement of all its PLC Facilities with the payment of RM1,245,872 on 21 October 2021 ("PLC Settlement Sum") pursuant to the Letter of Settlement. With the acceptance by KTB of the Letter of Settlement and the subsequent payment of the PLC Settlement Sum, the claim by PLC against TESB has been amicably resolved by the parties and KTB has fully settled all its facilities with PLC.

3. PN17 STATUS UPDATE

In view of the resolution of the default in the credit facilities as described in Section 2 above as well as the opinion by the Board of Directors of KTB that the Company is solvent and will be able to repay all its debts as and when they fall due within the period of twelve (12) months from the date of this announcement, the Company wishes to confirm that as at todate, it has only triggered para 2.1(e) of the PN17 under the MMLR, as announced in the First Announcement.

 

This announcement is dated 29 November 2021.

 

 






Announcement Info

Company Name KONSORTIUM TRANSNASIONAL BERHAD
Stock Name KTB
Date Announced 29 Nov 2021
Category General Announcement for PLC
Reference Number GA1-25112021-00014




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