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:
This announcement is dated 28 July 2021.