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TRANSOCEAN HOLDINGS BHD ("THE COMPANY") Announcement Pursuant To Practice Note No. 1/2001 ("PN 1/2001") - Default In Payment

TRANSOCEAN HOLDINGS BHD

Type

Announcement
SubjectTRANSOCEAN HOLDINGS BHD ("THE COMPANY")
Announcement Pursuant To Practice Note No. 1/2001 ("PN 1/2001") - Default In Payment

Contents :

Pursuant to Practice Note No. 1/2001 ("PN 1/2001") of the Listing Requirement of Bursa Malaysia Securities Berhad, we hereby announce that our 75% owned subsidiary, Transocean Biotec (M) Sdn Bhd ("TBM") has defaulted in repayment of banking facilities to its lender.


1. Details of the Default

1.1 On 1 June 2005, MBB issued a letter to TBM ("the MBB’s letter") to recall all its banking facilities granted to TBM and demand TBM for the repayment of the following entire outstanding amounts owing to MBB ("Total Outstanding Debts"):

      i) Overdraft outstanding of RM1,877,130.82 calculated as at 31 May 2005 together with further interest thereon at Base Lending Rate (BLR) + 1.75% per annum ("p.a.") calculated from 1 June 2005 until full settlement.

          (additional interest of 1.00% p.a. above the prescribed rate of interest will be imposed on the amount outstanding and unpaid upon demand for repayment.)
      ii) Term Loan outstanding of RM178,746.11 calculated as at 31 May 2005 together with further interest thereon at BLR + 1.75% p.a. calculated from 1 June 2005 until full settlement. (BLR of MBB as at 1 June 2005 was 6.00% p.a.)

          (penalty interest of 1.00 p.a. will be charged on any late payment of interest and/or instalment.)

1.2 MBB has demanded the Total Outstanding Debts to be paid by TBM to them within 14 days from the date of the MBB’s letter ("Prescribed Period") failing which, MBB shall commence legal proceedings against TBM for the recovery of the Total Outstanding Debts.

1.3 TBM had within the Prescribed Period, negotiated with MBB and requested them for an extension of time for the settlement of the Total Outstanding Debts by utilising the balance of the sale proceeds to be procured from the purchaser in relation to the disposal of TBM’s properties (which are currently being charged to MBB for the above facilities) as stipulated in a Sale and Purchase Agreement entered into by TBM on 14 April 2005, the details of which had been announced to the Exchange on 14 April 2005 (General Announcement Reference No. CS-050414-49592) ("the Disposal"). The said balance of the sale proceeds amounting to RM3,333,170.39 is expected to be paid by the purchaser within 6 months from the date of the said Sale & Purchase Agreement with an agreed extension of time of one month ("the Payment Date") and upon the terms and conditions thereon.

1.4 At the lapse of the Prescribed Period, TBM had yet to settle the Total Outstanding Debts as demanded by MBB.

2. The reasons for the default in payments

2.1 As disclosed in the said General Announcement, part of the balance of the sale proceeds arising from the Disposal had been earmarked for the settlement of the Total Outstanding Debts to MBB. However, as explained in paragraph 1.4 above, the said balance of the sale proceeds will only be paid to TBM within 6 months from the date of the Sale and Purchase Agreement. Hence, TBM had defaulted in the repayment of the banking facilities for the time being.

3. The steps taken or proposed to be taken by the Group to address the default in payments

3.1 TBM will continue to negotiate with MBB for the said extension of time for the settlement of the Total Outstanding Debts. Upon the receipt of the said balance of the sale proceeds on or before the Payment Date, part of the said balance of the sale proceeds will be utilised for such settlement.
    This announcement is dated 15 June 2005.


    Announcement Info

    Company NameTRANSOCEAN HOLDINGS BHD  
    Stock Name TOCEAN    
    Date Announced15 Jun 2005  
    CategoryGeneral Announcement
    Reference NoCS-050614-64104



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