1.   Introduction

Pursuant to Paragraph 9.19A of the Bursa’s MMLR, the Board of Directors of the Company wishes to announce that four (4) indirect wholly-owned subsidiaries of the Company viz Dolomite Properties Sdn Bhd, Dolomite Industries Company Sdn Bhd, Dolomite Industrial Park Sdn Bhd and Dolomite Engineering Sdn Bhd received a Letter of Demand each all dated 13.07.2022 from Public Bank Berhad (“the Bank”) through its solicitors informing that the said subsidiaries have defaulted in servicing interest for banking facilities granted by the Bank.

The details of the amounts in excess/arrears are as follows:

2.   The reasons for the default in payment

The failure to pay is due to cashflow constraint resulting in the said subsidiaries being unable to meet the obligations to pay the Bank on a timely manner.

3.   The measures by the listed issuer to address the default in payment

The Company is putting its best effort to dispose of certain development properties which are charged to the Bank so that redemption to the Bank can be enhanced and the banking facilities regularised. Recently, a few development properties had been sold and a substantial amount of the sales proceeds would be utilised to settle the arrears.

4.   The legal implications of the default in payment including the extent of the listed issuer’s liability in respect of the obligations incurred under the agreements for the indebtedness

The Bank has the right to proceed with legal proceedings against the Company to recover the outstanding amounts as Corporate Guarantees have been provided to the Bank for the said subsidiaries

5.   Whether the default in payment constitutes an event of default under a different agreement for indebtedness (cross default) and the details of such default, where applicable.

Cross default is not applicable as the banking facilities granted to the said subsidiaries by the Bank are all in default.

6.   The business, financial and operational impact of the default in payment on the listed issuer

In view of the liquidity constraints faced by the Company, the Company’s ability to continue its operations and business has been adversely affected. 

Nevertheless, the Company is actively pursuing the measure as mentioned in Item 3 above to regularise the banking facilities.

7.   Where the default in payment is in respect of a subsidiary or associated company, a confirmation as to whether the subsidiary or associated company is a major subsidiary or major associated company, as the case may be.

The said subsidiaries are not major subsidiaries, individually or collectively.

8.   Where the default in payment is in respect of a listed issuer, major subsidiary or major associated company, as the case may be, a statement as to whether the listed issuer is solvent.

Not applicable.

This announcement is dated 22 July 2022.