News

Winding-up Petition Served On Kedah Marble Sdn Bhd ("KMSB"), A Subsidiary Of Advance Synergy Berhad ("ASB")

BackFeb 28, 2001
General Announcement
Reference No CU-010228-61252
Submitting Merchant Bank : Not Applicable
Company Name : ADVANCE SYNERGY BERHAD 
Stock Name : ASB
Date Announced : 28/02/2001

Type : Reply to query
Reply to Query Letter by KLSE reference ID : SW-010228-38202
Subject : WINDING-UP PETITION SERVED ON KEDAH MARBLE SDN BHD ("KMSB"), A SUBSIDIARY OF ADVANCE SYNERGY BERHAD ("ASB")

Contents :

We refer to your letter dated 28 February 2001 in respect of the aforesaid matter. As requested, we furnish herewith the additional information for public release:-

1. The date of the presentation of the winding-up petition is 19 December 2000.

2. The Petitioner is claiming for an amount of RM626,100.00 together with interest (the rate of which was not specified).

3. The Petitioner is a trade creditor of KMSB and the debt was incurred in the normal course of business.
 
4. The total original cost of investment in KMSB by ASB amounted to RM52,657,500. As at 31 December 1999, the book value of our investment in KMSB amounted to RM48,557,500 after a provision of RM4,100,000 for diminution in value.
 
5. After seeking legal advice, ASB, as a shareholder of KMSB, intends to intervene in the winding-up proceedings and to oppose the winding-up petition.

6. Based on the latest audited accounts of KMSB for the financial year ended 31 December 1999, as no other accounts are available to us, the net tangible assets ("NTA") value of KMSB stood at RM50,248,861. Our proportionate share of 70% of the NTA in KMSB amounts to RM35,174,203 as compared to our book value of RM48,557,500 as at 31 December 1999 giving rise to a shortfall of RM13,383,297. A further provision of RM13,383,297 for diminution in value to account for the said shortfall has been provided for the financial year ended 31 December 2000 which will effectively reduce ASB Group's NTA per stock unit by 3.96 sen.

7. In the event the Petitioner is successful in the winding up proceedings, the expected exceptional losses arising therefrom would be RM13,383,297 based on the shortfall in the NTA value of KMSB as compared to our book value of the investment in KMSB.

(This announcement is dated 28 February 2001).




Query Letter content :
We refer to your announcement dated 27 February 2001 in respect of the
aforesaid matter.
In this connection, kindly furnish the Exchange immediately with the following
additional information for public release:-
The date of the presentation of the winding-up petition.
The particulars of the claim under the petition, including the amount claimed
for under the petition and the interest rate.
The details of the default or circumstances leading to the filing of the
winding-up petition on KMSB.
The total cost of investment in KMSB by ASB.
The steps proposed to be taken by ASB in respect of the winding-up proceedings
after seeking the legal advice.
The financial impact of the winding-up proceedings on ASB Group.
Expected losses arising from the winding-up proceedings, if any.
Yours faithfully


LISA LAM
Senior Manager
Listing Operations

LL/ASL/SW