DRB-HICOM BERHAD ("DRB-HICOM")
ACTION TAKEN BY RHB BANK BERHAD AND RHB DELTA FINANCE BERHAD AGAINST INTRAKOTA CONSOLIDATED BERHAD ("ICB"), EFFECTIVELY A 70% SUBSIDIARY OF DRB-HICOM AND LITIGATION AGAINST ICB AND DRB HICOM
Action taken by RHB Bank Berhad and RHB Delta Finance Berhad
The Board of Directors of DRB-HICOM wishes to inform Kuala Lumpur Stock Exchange that persons purporting to be agents of RHB Finance Berhad and RHB Delta Finance Berhad had, on 29 January 2003, repossessed thirty four (34) units of buses from Intrakota Consolidated Berhad ("ICB"), effectively a 70% subsidiary of DRB-HICOM. The repossession was carried out without prior notice given to ICB as is required by the law. DRB-HICOM and ICB take the view that the said repossession was carried out wrongfully and in breach of the law and have today taken urgent steps to file an action in the Kuala Lumpur High Court and have today obtained an interim injunction to prevent any more repossession of buses of ICB and as well an inter parties hearing fixed for 18 February 2003 for an injunction to order the return of the aforesaid 34 buses to ICB.
The following suits were taken against ICB as the Borrower and DRB-HICOM as the Guarantor as per the Table A below:-
The Intrakota group of companies ("Intrakota") has been under the purview of the Corporate Debt Restructuring Committee ("CDRC") since 1999. Pursuant to the closure of the CDRC in July 2002, Intrakota and DRB-HICOM continued negotiations with the government under the proposed integration of the Klang Valley public transportation system.
Intrakota and DRB-HICOM are in the midst of concluding negotiations with the Government and Danaharta on the acquisition of its bus related assets. A resolution is expected to be reached in the near future.
c.c. Issues and Investment Division
(Fax No : 62015213)
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