OTHERS BRAHIMS HOLDINGS BERHAD (“BRAHIMS” OR THE COMPANY”) PROPOSED OUTSOURCING ARRANGEMENT FOR TAMADAM INDUSTRIES SDN BHD

We refer to the announcement dated 27 July 2021 in relation to the proposed outsourcing arrangement for Tamadam Industries Sdn Bhd (“Announcement”). The Board of Directors wishes to furnish further information relating to the Announcement. Unless otherwise defined, the terms herein shall bear the same meaning as defined in the Announcement.

Pursuant to Section 2.3 of the Announcement, it was announced that the new management team of Tamadam has undertaken to fulfil the Proposed Repayment.  The repayment will be undertaken on a best efforts basis, and no guarantee will be provided. Nonetheless, as mentioned in the Announcement, the Proposed Outsourcing will benefit Brahims as presently, our core business of flight catering is unable to service our borrowings due to insufficient revenues arising from the virtual standstill of the passenger aviation industry. In addition, we wish to reiterate that the overall performance of Tamadam will be reviewed by the Board every 6 months after the new management takes control of Tamadam.

In addition, pursuant to Section 6.6 of the Announcement, it was announced that the Parties to the Agreement shall be entitled to terminate the Agreement if any of the events set out in the Agreement occurs. We wish to clarify that these events refer to the following:

1. If the new management is unable to fulfil the Proposed Repayment based on the repayment schedule;
2. If any Party commits a breach of the Agreement and fail to remedy such breach within 30 days after being given notice by the other Party; or
3. If any Party is to go into liquidation, whether compulsory or voluntary (except for the purpose of a bona fide reconstruction or amalgamation with the consent of the other Party) or if any Party shall have an administrator, receiver or manager appointed over a substantial part of its assets and any such appointment is not discharged within 30 days of its appointment.

This announcement is dated 28 July 2021.