News
Advance Synergy Furniture Sdn Bhd - Appointment Of Special Administrators Under Section 24 Of The Pengurusan Danaharta Nasional Berhad Act 1998 ("Danaharta Act")
BackSep 09, 1999
| General Announcement Reference No CU-990909-56146 |
| Submitting Merchant Bank | : | Not Applicable |
| Company Name | : | ADVANCE SYNERGY BERHAD |
| Stock Name | : | ASB |
| Date Announced | : | 09/09/1999 |
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| Type | : | Announcement |
| Subject | : | ADVANCE SYNERGY FURNITURE SDN BHD - APPOINTMENT OF SPECIAL ADMINISTRATORS UNDER SECTION 24 OF THE PENGURUSAN DANAHARTA NASIONAL BERHAD ACT 1998 ("Danaharta Act") |
Contents :
The Board of Directors of Advance Synergy Berhad ("ASB") wishes to make the following announcement :-
1. Mohd Arif Hj. Mustapah and Syed Amin Aljeffri of Messrs M.G.I. Aljeffri & Co. have notified our wholly-owned subsidiary company, Advance Synergy Furniture Sdn Bhd ("ASF"), that they have been appointed as Special Administrators of ASF on 9 September 1999 by Pengurusan Danaharta Nasional Berhad ("Danaharta") under Section 24 of the Danaharta Act. ASF is a wholly-owned subsidiary of Excellent Arch Sdn Bhd, which in turn is a wholly-owned subsidiary of ASB.
On 20 November 1998, ASF was notified by Bank Bumiputra Malaysia Berhad ("BBMB") that they have sold to Danaharta all their rights, title and interest relating to the credit facilities comprising Term Loan of RM24 million, Overdraft of RM3 million, Trade Facility of RM3 million and Bank Guarantee of RM262,000, granted under two agreements dated 13 January 1995 and 3 April 1995 and that under the said sale, Danaharta is now the lender of the said credit facilities extended to ASF. As at 31 August 1999, the estimated total amount owing under the said credit facilities amounted to RM33,573,680.
2. The control of ASF's assets and affairs now rests with the Special Administrators and under the Danaharta Act, the Special Administrators:-
(a) have control of ASF's business, property and other assets;
(b) may carry on the business and manage the assets and the affairs of ASF;
(c) may sell or otherwise dispose of all or part of the assets of ASF; and
(d) may perform any function and exercise any power that ASF or any of its officers
could perform or exercise if a Special Administrator had not been appointed.
With the appointment of the Special Administrators, all powers of the Board of Directors and Management of ASF will be suspended and no person other than the Special Administrators can perform or exercise, or purport to perform or exercise, a function as officer of ASF.
3. There will not be any material operational impact on ASF and the Board does not foresee any disruption to the business or exceptional losses arising from the appointment of the Special Administrators as ASF has wound down its operations since the second half of 1998. For the five (5) months ended 31 May 1999, the unaudited turnover of ASF amounted to RM319,192.
4. The Directors of ASB do not expect any material effect on the net tangible assets and earnings of ASB Group for the financial year ending 31 December 1999.
Full provision for diminution in the cost of investment in ASF has already been made in the audited accounts of ASB Group as at 31 December 1998. With the said provision, the cost of investment is now recorded at RM1.00. However, ASB has also extended advances to ASF and as at 31 December 1998 and 30 June 1999 the balances were RM14.9 million and RM15.6 million respectively. The balance as at 31 December 1998 of RM14.9 million is after a provision being made of RM4,132,720 which was deemed unrecoverable.
5. Since the acquisition of the credit facilities by Danaharta from BBMB, ASB and ASF have been in constant discussion with Danaharta to formulate a restructuring scheme for ASF. ASB and ASF will continue to pursue this matter with the Special Administrators.