ALOR SETAR SESSIONS COURT NO. B52 NCC - 12/05-2017HIAP SENG TYRE (KULIM) SDN BHD V IRE-TEX (MALAYSIA) SDN BHD ("ITMSB")

IRE-TEX CORPORATION BERHAD

Type Reply to Query
Reply to Bursa Malaysia's Query Letter - Reference ID IQL-19052017-00001
Subject ALOR SETAR SESSIONS COURT NO. B52 NCC - 12/05-2017HIAP SENG TYRE (KULIM) SDN BHD V IRE-TEX (MALAYSIA) SDN BHD ("ITMSB")
Description
IRE-TEX CORPORATION BERHAD (IRETEX or the Company)  Alor Setar Sessions Court No. B52 NCC - 12/05-2017  Hiap Seng Tyre (Kulim) Sdn Bhd v Ire-Tex (Malaysia) Sdn Bhd
Query Letter Contents

We refer to your Company’s announcement dated 18 May 2017, in respect of the aforesaid matter.
In this connection, kindly furnish Bursa Securities with the following additional information for public release:-

1)      Date of the presentation of the Writ of Summons and Statement of Claim.

2)      Breakdown of the amount and interest claimed together with the interest rate in respect of the Writ of Summons and Statement of Claim.

3)      Details of the default or circumstances leading to the filing of the Writ of Summons and Statement of Claim against ITMSB.

4)      Whether ITMSB is a major subsidiary of Ire-Tex Corporation Berhad (“IreTex”). If yes, to provide the total cost investment in ITMSB.

5)      The financial and operational impact of the Writ of Summons and Statement of Claim on IreTex and its subsidiaries.

6)      The expected losses, if any arising from the Writ of Summons and Statement of Claim.

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

 

Yours faithfully,
HENG TECK HENG
Vice President, Issuers,
Listing, Regulation
IJ/TEK

Cc : Market Surveillance Dept. , Securities Commission (via fax)

Reference is made to the Company’s announcement dated 18 May 2017.

The Company wishes to further announce that:-

1. The Writ and Statement of Claim were filed in the Alor Setar Sessions Court on 3rd May 2017, and served on the Company on 18 May 2017.

2. The principal claim is for RM656,747.01 made up as follows:-

a)

Rental for January and February 2017

:

RM58,936.00

b)

Arrears of Electricity Bills

:

RM7,957.64

c)

Arrears of Water Bills

:

RM493.37

d)

Rental for the unexpired term of the tenancy

:

RM589,360.00

Interest at the rate of 5% per annum is claimed on the above sums from the date of filing of the Writ until full settlement.

3. The allegation in the Writ and Statement of Claim is that the ITSMSB defaulted in the tenancy by vacating the premises prematurely.

4. ITMSB is a major subsidiary of IRETEX. The total cost of investment in ITSB is RM2,266,200.00.

5. Financial loss on Ire-Tex (Malaysia) Sdn Bhd.

6. Expected loss is approximately RM700,000.00 if the Plaintiff is successful.

This announcement has been reviewed in accordance with the Interim Injunction dated 18 May 2017 in Kuala Lumpur High Court Originating Summons No. WA-24NCC-170-05/2017 by the following persons:-

1. Felix Chin Wui Choong.

2. Mak Lin Kum.

And

3. Kong Hon Kay.

4. Hamdan bin Mohd Nor.





Announcement Info

Company Name IRE-TEX CORPORATION BERHAD
Stock Name IRETEX
Date Announced 23 May 2017
Category General Announcement for PLC
Reference Number GA1-23052017-00088