WINDING UP / RECEIVER & MANAGER / RESTRAINING ORDER / SPECIAL ADMINISTRATOR BRAHIMS HOLDINGS BERHAD (“BHB” OR “THE COMPANY”) Companies Winding-Up Petition No. KCH-28NCC-19/ 6-2017 (HC 1) Petitioner: Hock Seng Lee Berhad Respondent: Admuda Sdn. Bhd., a 60% owned subsidiary of BHB

BRAHIM’S HOLDINGS BERHAD

 

Type Announcement
Subject WINDING UP / RECEIVER & MANAGER / RESTRAINING ORDER / SPECIAL ADMINISTRATOR
Description 
BRAHIMS HOLDINGS BERHAD ("BHB" OR "THE COMPANY")
Companies Winding-Up Petition No. KCH-28NCC-19/ 6-2017 (HC 1)
Petitioner: Hock Seng Lee Berhad
Respondent: Admuda Sdn. Bhd., a 60% owned subsidiary of BHB

Reference is made to the Company’s announcements dated 15 June 2016, 23 February 2017 and 6 March 2017 in relation to material litigation between Hock Seng Lee Berhad (“HSL”) and Admuda Sdn. Bhd. (“Admuda”).

BHB wishes to announce that:-

  1. A winding-up Petition was served on Admuda on 21 June 2017.
  2. The winding-up petition is based on a summary of judgement obtained by HSL against Admuda vide judgement dated 17 February 2017 for the sum of RM6,939,196.75 and interest that the Court deems fit and cost of RM6,000. Admuda aggrieved with the said judgement and has appealed to the Court of Appeal.
  3. Based on the said Judgement and failure of Admuda to obtain a stay of execution, HSL commenced the said winding-up proceedings.
  4. BHB has 60% equity in Admuda and it is not a major subsidiary of BHB.
  5. The Board of Directors believe that there is minimal financial and operational impact of the winding-up proceedings on the Group as Admuda has thus far been dormant. Due to the long delay in commencing its business, BHB has for accounting purposes treated the balance of the value of the investment to RM8 million as non-current assets as reported on page 60 of BHB’s 2016 Annual Report.
  6. The total losses from the winding-up proceedings is basically the Company’s initial investment.
  7. Admuda being a legal entity has taken steps to appeal against the said judgement and will seek a postponement of the winding-up proceedings, if possible.

The Company will make the necessary announcement on further developments on this matter in due course.

This announcement is dated 23 June 2017