Email This Print This News

Kuala Lumpur High court Civil Court No. D1-22-819-2007 Binanusa Sdn Bhd -v- Malaysia Building Society Berhad

BackAug 10, 2007

Summon and Statement of Claim dated 22 June 2007 served by Binanusa Sdn Bhd ("the Plaintiff") for an alleged breach of obligation by our Company as financier. A Loan Agreement dated 11 July 1997 (hereinafter referred to as "the Loan Agreement") was entered into between the Plaintiff and our Company wherein our Company had agreed inter aliato grant the Plaintiff a bridging loan of RM4.7 million to finance a housing development project known as Taman Terubong Jaya 2, Relau, Penang.

The Plaintiff had fully redeemed its loan in June 2004.

The Plaintiff has in their statement of claim, alleged that our Company had breached its obligation as financier. As such, the Plaintiff has sought for the following reliefs from the Court:-

(a) A sum of RM16,135,808.03;

(b) General damages and punitive for the amount to be determined by the Court;

(c) Interest on the total damages at the rate of 8% per annum from the date of the Writ of Summons until the date of payment thereof in full;

(d) Costs; and

(e) Such other relief that the Court deems fit and reasonable.

Our Company has filed its appearance on 31 July 2007 and will be filing its defence in due course.


FINANCIAL AND OPERATIONAL IMPACT OF THE WRIT ON THE GROUP

A. FINANCIAL IMPACT
Our Company is currently seeking legal advice from its Solicitors and is unable to determine the financial impact arising from the Writ of Summon.


B. OPERATIONAL IMPACT ON THE GROUP
Our Company does not foresee any operational impact on our Group arising from the Writ of Summon.