General Announcement
Reference No CU-991124-60222

Company Name
:
RENONG BERHAD  
Stock Name
:
RENONG  
Date Announced
:
25/11/1999  

Type:Announcement
Subject:DEFAULT IN INTEREST PAYMENT BY PROJEK USAHASAMA TRANSIT RINGAN AUTOMATIK SDN BHD ("PUTRA"), A WHOLLY-OWNED SUBSIDIARY OF RENONG BERHAD ("RENONG")

Contents :

1. INTRODUCTION

Renong wishes to announce that PUTRA had defaulted on its interest servicing obligation amounting to RM44,589,020.33 in respect of its RM2.0 Billion Commercial Financing Facilities (the "Loan") from a number of financial institutions. The Loan is comprised of two tranches which are the RM1.0 Billion Conventional Tranche and the RM1.0 Billion Islamic Tranche which are secured by a charge over and assignment of all project accounts and assets. The default arose principally because actual revenues received are significantly below than budgeted.

2. LEGAL AND FINANCIAL IMPLICATION

Non payment of interest constitutes an event of default for both tranches whereupon PUTRA will be required to repay the facilities in full and the security would be enforceable. The Security Agent as the debenture holder may also appoint a receiver or a receiver and manager of the charged assets.

3. MEASURES TAKEN BY PUTRA



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